Tuesday, August 27, 2013

UPDATE: Portland Residents Fill Courtroom at Nationstar Contempt Hearing

Members of the Irvington District Community outside the Federal Bankruptcy Court in downtown Portland.
On Wednesday August 27, 2013, a dozen Portland residents attended a hearing in federal court where Nationstar Mortgage LLC was ordered to explain why it shouldn't be held in contempt.

The Honorable Judge Perris set the show cause hearing on July 24, 2013 after Portland homeowner Michael McEldery complained of Nationstar's alleged fraudulent mortgage practices.

Nationstar's attorney denied all wrongdoing but announced the company planned to dismiss its foreclosure lawsuit pending in Multnomah County Circuit Court.

Nationstar previously refused to dismiss the foreclosure and even threatened to take default against the McEldery family while the contempt matter was pending.

"Jesus was on our side today," one resident exclaimed outside of Court.

The Court indicated the case will be set for trial sometime after November 15, 2013.




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]

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