Judge Faces Foreclosure After Told to Stop Making Mortgage Payments

January 13, 2011 No Comments »

foreclosure

A Cleveland-area judge is facing foreclosure after he stopped making mortgage payments on his eight-bedroom, lakefront home, according to Cleveland.com.

No big real, right? After all, there were nearly three million foreclosure notices sent out last year alone.

Well, what makes the story unusual is that Cuyahoga County Juvenile Court judge Peter Sikora voluntarily stopped making mortgage payments, despite being able to, thanks to his $121,350 a year salary.

Apparently Sikora took notice of the low mortgage rates on offer and inquired about a refinance, but was unable to qualify because he was underwater on his $1 million mortgage (how to refinance with negative equity?)

That led him to inquire about a loan modification, at which point a JP Morgan Chase representative told him the only way he could qualify would be to stop making payments.

He obliged, only to be served a foreclosure notice while in negotiations for that very loan modification.

And now Chase is seeking $999,000, including $6,400 in unpaid property taxes.

The case is far from solved, and the attorney for Chase didn’t return a phone call from the paper.

But it’s certainly ironic, given all the recent hoopla with judges blocking foreclosures.

Two weeks ago, the New Jersey Courts system threatened to put the brakes on foreclosures in light of the recent robosigning allegations – a hearing is scheduled for January 19 to sort that out.

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