Doucet Prevents Default Judgment in Reverse Mortgage Case
Doucet & Associates Co., L.P.A. focuses on foreclosure defense because we firmly believe that the needs of innocent consumers can be eclipsed in court by massive banks. Because of the size of today’s banks, it is easy for banks to cut corners and neglect their duties to their customers under the guise of efficiency, which often contributes to foreclosure. However, this activity can result in illegal behavior, especially when short-term profits outweigh basic human decency. In the case of our client, it likely jeopardized her mother’s estate.
Our client is the executor of her late mother’s estate. The estate included a home subject to a reverse mortgage that came due upon the mother’s passing. Unlike conventional mortgages, a reverse mortgage requires no monthly payments and accrues interest until it comes due after the borrower dies, moves out of the property, or sells the house. Because interest is not paid during the life of the loan, a reverse mortgage can result in a substantial debt when it finally comes due. If the borrower dies, it usually means that the lender has to go through the borrower’s estate to collect the outstanding debt, which can be troublesome for whoever is tasked with the estate’s management.
OneWest, the bank holding our client’s note, filed a foreclosure lawsuit in an attempt to collect the outstanding reverse mortgage debt. If a foreclosure lawsuit is filed in Ohio, the defendant has twenty-eight days to file an answer. If no answer is filed, the defendant may face a default judgment. As the executor of her mother’s estate, our client was the one tasked with the responsibility of answering the lawsuit. However, our client asserts that OneWest attempted to circumvent the law by foreclosing on her mother’s home without first providing notice to the family. Had the foreclosure lawsuit gone unnoticed, a default judgment would have likely been entered against our client.
OneWest alleged it was unable to find the addresses of the family members to notify them of the outstanding debt and foreclosure, yet our client’s brother lived next door to the mother’s home. Our client was not even made aware of OneWest’s foreclosure lawsuit until the bank servicing on her brother’s home notified her. She hired Doucet & Associates to file a motion for additional time to properly respond to the foreclosure lawsuit, and hopefully save the family’s estate. The court granted the motion and Doucet & Associates is now working to protect the mother’s estate and ensure all debts are properly paid.
Time is always an important factor in a foreclosure lawsuit, and this added time will allow for our law firm to properly analyze the case and create a solution that best suits our client. As a law firm focused on consumer law and foreclosure defense, it is unfortunate to say that we experience this sort of behavior from banks quite often. We have seen, time and again, that banks would much rather file for foreclosure and attempt to keep other parties in the dark than settle the debt on terms that all parties involved can agree on. If you are currently dealing with a foreclosure lawsuit, or need advice managing an estate, call Doucet & Associates at (614) 944-5219.