Washington state invalidates common mortgage provision

[Yo_Mama_Been_Loggin]

SEATTLE — Laura Jordan came home from work one day to find herself locked out. She had missed two mortgage payments, and the company servicing her loan had changed the locks without warning.

In a ruling this month, the Washington Supreme Court found that action illegal — a decision that clears the way for a federal class-action case that Jordan brought on behalf of at least 3,600 borrowers in the state, and one that could have broad ramifications on how some lenders respond when homeowners miss payments.

"This is criminal trespass and theft, and it should be treated as such," said Sheila O'Sullivan, executive director of the Northwest Consumer Law Center. "There's no basis for them to walk in and change the locks on a person's home until they have foreclosed. It's an important ruling."

The mortgage industry is wrestling with the significance of the 6-3 ruling, which found that provisions standard in mortgage documents around the country conflict with state law. The provisions allow for lenders to change locks, winterize homes or take other steps to preserve the value of properties that are in default or abandoned.

In a friend-of-the-court-brief, the Federal Home Loan Mortgage Corporation — better known as Freddie Mac — highlighted the importance of such provisions in maintaining its collateral and avoiding blight that might harm property values in a neighborhood.

But the court held that they violate state law, which prohibits lenders from taking possession of property before foreclosure. The court addressed the question at the request of a federal judge in Spokane, who is overseeing the class action.

http://www.msn.com/en-us/money/realestate/washington-state-invalidates-common-mortgage-provision/ar-BBuqk9D?li=BBnbfcN&ocid=edgsp

[Feeling the Bern]

1. Woody said right

If you'll gather 'round me, children,
A story I will tell
'Bout Pretty Boy Floyd, an outlaw,
Oklahoma knew him well.

It was in the town of Shawnee,
A Saturday afternoon,
His wife beside him in his wagon
As into town they rode.

There a deputy sheriff approached him
In a manner rather rude,
Vulgar words of anger,
An' his wife she overheard.

Pretty Boy grabbed a log chain,
And the deputy grabbed his gun;
In the fight that followed
He laid that deputy down.

Then he took to the trees and timber
Along the river shore,
Hiding on the river bottom
And he never come back no more.

Yes, he took to the trees and timber
To live a life of shame;
Every crime in Oklahoma
Was added to his name.

But a many a starvin' farmer
The same old story told
How the outlaw paid their mortgage
And saved their little homes.

Others tell you 'bout a stranger
That come to beg a meal,
Underneath his napkin
Left a thousand-dollar bill.

It was in Oklahoma City,
It was on a Christmas Day,
There was a whole car load of groceries
Come with a note to say:

"Well, you say that I'm an outlaw,
You say that I'm a thief.
Here's a Christmas dinner
For the families on relief."

Yes, as through this world I've wandered
I've seen lots of funny men;
Some will rob you with a six-gun,
And some with a fountain pen.

And as through your life you travel,
Yes, as through your life you roam,
You won't never see an outlaw
Drive a family from their home.