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Loan Servicer Sought Foreclosure Despite Proof Mortgage Was Paid


GREENFIELD, Ind. — A woman who said she had no idea that her house had been put up for foreclosure even though the mortgage was paid off is relieved that a loan servicing company has backed off after years of struggle.

After Marilyn Elliott’s parents died, she and her sons were bequeathed the home on Noble Street in 2006.

After her father died, Elliott’s mother, Dorothy, took out a home improvement loan for $90,000 in 1999 that was paid in full in 2001.

Within months of her mother’s death in January 2006, Elliott began encountering people who made monthly visits to her doorstep, telling her to vacate the home and demanding her house keys.

Elliott began putting a lot of her belongings in storage to keep them away from unwanted visitors.

“You’re not getting my home. I said, ‘There’s the street. Hit it,'” Elliott said.

The Army veteran said she didn’t know that Florida-based Ocwen Financial Corporation had sought foreclosure.

The company was given the deed to the home and asked a court to remove Elliott and her family in June 2007.

In November 2006, a court had sided with Ocwen, and the home was sold in a sheriff’s sale in February 2007.

“How could it be sold? I said, ‘Nobody even told us,'” Elliott said.

Elliott filed a complaint with the Indiana Attorney General’s Office and the Comptroller of the Currency, which regulates national banks.

She stayed in the home and defended it,” said Tom Williams, Elliott’s lawyer.

Elliott’s case advanced to the Indiana Court of Appeals, where the court gave a stinging response to the companies for their actions and questioned their motivation.

“The Kafkaesque character of this litigation is difficult to deny,” the judges said in their opinion. (below)

The foreclosure remained on hold, and the case was sent back for a trial.

“They (Ocwen) owned the house. I suppose they didn’t want to get off that deed,” Williams said. “They’d make a great deal of money reselling this house.

“Ocwen Financial Corporation dropped its lawsuit a couple of weeks ago.

“I got a hold of my son. I said, ‘It’s over, it’s over.’ He said, ‘Hooray,'” Elliott said. “That was a very good moment. This is my home, my mom and dad’s home. I want to live here until I die.

“A Chase representative told 6News that the company no longer holds the loan and had nothing to do with the foreclosure action. An Owcen representative said the company is looking into the matter.

More Information: How To File A Complaint With The Comptroller Of The Currency

Fore more go here…


The Indiana Court of Appeals Ruling
Elliott v. JPMorgan Chase Bank