How one borrower has avoided foreclosure for 8 years

Borrower Joseph Lents has been able to forestall foreclosure (and hasn’t made a payment) for 8 years now on his Washington Mutual loan.  How did he do it?  He simply asked the bank to produce the promissory note, which they repeatedly could not, and without the actual promissory note, Judges have repeatedly ruled that the bank can’t foreclose.

I’m not necessarily condoning people ducking responsibility for their commitments, but when banks like WaMu/Chase repeatedly stack the rules against customers to maximize fee income, and refuse to be reasonable or competent in working with people to obtain loan modifications they are entitled to under federal law, it it nice to see a little bit of that going back to the banks.

The bad record keeping that seems to be the cornerstone of the current foreclosure paperwork crisis also has some uncomfortable implications on how well Chase manages the small details of the rest of its business, which according to the many stories we’ve posted here, they don’t seem to be very good at.

1 Comment

  • By coakl, January 12, 2011 @ 11:42 am

    The lender may not be able to foreclose but lenders will report your delinquency to the credit bureaus. Lents’s debt has grown to about $2.5 million, including unpaid taxes, interest and penalties.

    Lent’s credit score is in the toilet, trapping him in the house and guaranteeing that no lender will touch him for the rest of his life. Anyone else who checks Lent’s credit will also stay away from him (e.g. employers, landlords, even opening checking accounts at some banks).

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