February 15, 2010
The Long Island couple whose $525,000 mortgage was wiped off the books by a judge furious over predatory banking say their financial institution is now stalking them like "the mob" to get the money back.
Greg Horoski and his wife, Diana Jano-Horoski, of North Patchogue won a stunning court ruling in November against IndyMac Mortgage Services when an angry judge ordered the bank to eat the couple's housing debt because of the institution's alleged cold-blooded lending practices.
But the homeowners said that the next month, they received a letter from the bank insisting they still owe $474,936.78.
"I was outraged -- it's like doing business with the mob," said Horoski, who sells collectible dolls online.
His wife said the letter went directly against the judge's ruling.
"To disregard the word of law was just beyond the pale," said Jano-Horoski, a college English professor.
Suffolk Supreme Court Justice Jeffrey Arlen Spinner, who ruled against the bank, agreed.
Spinner -- who had labeled the bank's actions "harsh, repugnant, shocking and repulsive" in November -- immediately ordered an emergency hearing on the issue.
That's when IndyMac -- which has been taken over by OneWest Bank of California, an institution that received $814 million in federal bailout money -- claimed that the letter was just a computer error.
The Horoskis then received an apology from the bank, which said it "deeply regrets its error and sincerely apologizes to you for sending the letter."
Still, IndyMac on Thursday filed a legal appeal of Spinner's original ruling to try to reverse his decision and reinstate the debt.
The institution also is still warning the Horoskis that they might be receiving other notices regarding the debt, including one informing them about the "tax reporting of cancellation of indebtedness income."
"I take that as a veiled threat," Horoski said. "What they're saying is, 'We're going to stick you with a big tax debt,' and the taxes might be based on the inflated [mortgage] amount."
Horoski, 55, said the 3,400-square-foot ranch home is valued now at only about $275,000, but if taxation is figured on the full amount that was allegedly owed, the tax bill would be much heftier.
"The housing market crashed. It's not like we took the money and lost it in Atlantic City. All we did was refinance the house," Horoski said.
The Long Island couple whose $525,000 mortgage was wiped off the books by a judge furious over predatory banking say their financial institution is now stalking them like "the mob" to get the money back.
Greg Horoski and his wife, Diana Jano-Horoski, of North Patchogue won a stunning court ruling in November against IndyMac Mortgage Services when an angry judge ordered the bank to eat the couple's housing debt because of the institution's alleged cold-blooded lending practices.
But the homeowners said that the next month, they received a letter from the bank insisting they still owe $474,936.78.
"I was outraged -- it's like doing business with the mob," said Horoski, who sells collectible dolls online.
His wife said the letter went directly against the judge's ruling.
"To disregard the word of law was just beyond the pale," said Jano-Horoski, a college English professor.
Suffolk Supreme Court Justice Jeffrey Arlen Spinner, who ruled against the bank, agreed.
Spinner -- who had labeled the bank's actions "harsh, repugnant, shocking and repulsive" in November -- immediately ordered an emergency hearing on the issue.
That's when IndyMac -- which has been taken over by OneWest Bank of California, an institution that received $814 million in federal bailout money -- claimed that the letter was just a computer error.
The Horoskis then received an apology from the bank, which said it "deeply regrets its error and sincerely apologizes to you for sending the letter."
Still, IndyMac on Thursday filed a legal appeal of Spinner's original ruling to try to reverse his decision and reinstate the debt.
The institution also is still warning the Horoskis that they might be receiving other notices regarding the debt, including one informing them about the "tax reporting of cancellation of indebtedness income."
"I take that as a veiled threat," Horoski said. "What they're saying is, 'We're going to stick you with a big tax debt,' and the taxes might be based on the inflated [mortgage] amount."
Horoski, 55, said the 3,400-square-foot ranch home is valued now at only about $275,000, but if taxation is figured on the full amount that was allegedly owed, the tax bill would be much heftier.
"The housing market crashed. It's not like we took the money and lost it in Atlantic City. All we did was refinance the house," Horoski said.
Closed November 2010
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