Thursday, July 18, 2013

UPDATE - Portland Family Says Nationstar Mortgage Scammed Them

UPDATE

On Wednesday afternoon, July 18, 2013, Judge Perris issued an order reopening the McEldery bankruptcy case to entertain a motion for contempt against Nationstar Mortgage LLC.

Mr. McEldery's attorney expects to file a motion detailing Nationstar's alleged wrongdoing shortly.

Nationstar's attorney has yet to file a response or return a phone call for comment.

[District of Oregon Bankruptcy Court Case No. 11-38361-elp7]
[Mult. County Cir. Court Case No. 130608595]

ORIGINAL BLOG

In September 2012, Portland homeowner Michael McEldery became unable to make his mortgage payment to Nationstar.

"After a death in the family, we knew we couldn't afford the payment for much longer," he says.

After five months of delinquency, Nationstar sent McEldery and his wife a letter that offered them hope.

"We felt so lucky. The letter said if we sent three monthly checks starting in February, we could keep our home with lower payments," says McEldery.

The McElderys did as the letter said and sent Nationstar three cashier's checks dated February, March, and April 2013.

"We kept copies of the checks as a receipt, just in case," says Michael's wife Judy McEldery.

In April, several weeks after making their third payment, a Nationstar rep called the McElderys with shocking news.

"[Nationstar] said it never got our second check," Judy says. "We were devastated," says Michael.

The McElderys began frantically requesting bank records but by May it was too late. 

Based on a summons issued May 2nd by its Portland attorney Ryan Farmer, Nationstar was moving forward with foreclosure.

In disbelief at their seeming misfortune, the McElderys continued to research the missing check with their bank.

In late June, bank records confirmed their sneaking suspicion.

"According to the bank records, Nationstar had the check all along," says Judy.

Nationstar later confirmed it held on to the check until June, then cashed it after the trial period ended.

Nationstar now refuses to honor its original modification offer, refuses to refund the trial payments, and refuses to stop the foreclosure proceeding.

"We may go away. But not without a fight," says a dogged Michael McEldery, who turned 66 year old in February.

On July 15, 2013, Mr. McEldery, through a Portland consumer protection attorney, filed papers in federal court indicating he intends to ask Judge Elizabeth Perris to hold Nationstar in contempt.

Nationstar has yet to file a response. Nationstar's attorney did not return a phone call for comment.

[District of Oregon Bankruptcy Court Case No. 11-38361-elp7]
[Mult. County Cir. Court Case No. 130608595]