Scranton woman suing bank, lawyer for not filing proper paperwork after home sale
For more than three years, Shelia M. Layo made $69,594 in mortgage payments on a property she did not own.
The Scranton woman is living in the house, which she still doesn’t own, and is suing Peoples Neighborhood Bank, closing agent Richard Hallock and others in a bizarre case involving the failure to record a deed and a mortgage.
The Hallstead-based bank didn’t tell her about the incomplete closing or remedy the situation. Yet the bank wanted her to continue to make payments, noting that she is still personally liable for the note. Frustrated, she stopped paying. The bank sent her a notice of intention to foreclose in May, even though it couldn’t foreclose without a mortgage and without her being the owner.
An attorney, Mr. Hallock has since pleaded guilty to felony theft in an unrelated matter and was suspended from practicing law for three years. He has moved out of the area – leaving in his wake a flurry of escrow and financial irregularities – and could not be located for comment.