As God as my witness, I thought that turkeys could fly.
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If I’d have known that I’d have gotten my mortgage forgiven because the bank loaning me money had the audacity to require repayment, I’d have bought Harriet’s house in 2005 at her “Make Me Move!” wishing price.
Sample news story (for there are several):
Here’s a link with a bit more information on that case.
The $698,000 ‘mistake’
We’re supposed to feel sorry for this stupid woman.
From the article Gary cited:
IndyMac rejected a bid at full market price from Yaho-Horoski’s daughter…
The bid was from an interested party. How could they be confident it was “full market value”? If Mom and pop wanted to leave the house to their daughter, they’d have had to pay off the mortgage to do so. Its no coincidence that even the banks (having dinosaur-like collective intelect and similar slowness to act and/or learn) are wise to sweetheart short sales among family and friends.
The lender can choose a settlement or workout arrangement IF THEY BELIEVE IT BENEFITS THEM — THEY HAVE NO OBLIGATION TO DO SO. The lender has a right to have the court enforce the obligations set forth in the contract – pay or foreclose. Anything other is a gift.
The judge was clearly pissed about the bank officer skipping settlement hearings – so you fine the Plaintiff for contempt. To completely discharge the debt baing sued on? This judge will be getting slapped down hard by the Appellate Division or Appellate Term.