FOR IMMEDIATE RELEASE
Couple's Hellish Mortgage Marks Need forCentralized Record System
-Daily Business Review
(12/28/00)
By Julie Kay
Review Staff Writer
[continued, Pg. 2 of 2]
Uncertain of who truly owned their mortgage, the couple stopped payments three years ago. the Balcoms decided to move to the Keys but were unable to sell the house without clear title. So they rented the house and moved anyway.
In the meantime, they found their credit in tatters. Although he makes a good living as a pilot for American Airlines, Bob Balcom could not even get a credit card with which to rent a car on trips. With three teenagers and a wife to support, and his money tied up in the old house and his new one. Balcom had little left over for extras.
Then Cheryl Balcom became ill with Lou Gehrig's disease and could no longer work. The disease is always fatal and Cheryl Balcom has only months to live.
Ultimately, Balcom stopped paying taxes on the Fort Lauderdale house and let repairs slide. the house became unrentable and sat vacant for a year.
Meanwhile, a compnay called Option One Mortgage Corp., which eventually proved it held the mortgage, sued the Balcoms for nonpayment on three separate occasions. And on three separate occasions Broward County judges dismissed the cases.
But finally, Option One agreed to a mediation and a "quiet title action" a process by which a mortgage holder proves it is legitimate. This lengthy process took six months.
Lawyers for Option One did not return calls for comment. The title action could not trace all the whereabouts of the little piece of paper, but here's what they found:
- On June 12, 1996, SC Funding assigned the Balcoms' note and mortgage to Cemar Investments Inc.
- On June 18, 1996, the mortgage wound up in the hands of San Marino Note and Investments, Inc.
- On June 20, 1996, San Marino passed the note along to Federal Savings.
No one knows exactly how, but the mortgage then moved through several other mortgage companies, including Chase Bank of Texas and Newport Pacific Funding Group of California. Newport Pacific is one of the compnies being sued along with SC Funding for allegedly promoting a Ponzi scheme.
Option one ultimately proved to all concerned that it did, indeed, hold the mortgage. The company originally demanded about $515,000 in principal, back interest, late charges and legal fees from the Balcoms. But during mediation, the company agreed to reduce the principal balance to $169,000, taking into account the taxes and maintenance for which the Balcomds wree responsible plus their ruined credit and emotional distress.
The Fort Lauderdale house was finally sold this month for about $430,000. But after paying back taxes, interest and legal fees, the Balcoms will net $160,000.
Bob expects the check "any day". He plans to use the funds to help make his wife's last months comfortable.
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Oppenheim is a partner in the firm, along with his wife Ellen Pilelsky. Oppenheim & Pilelsky, the oldest law firm in Weston, is a general practice concentrating in real estate, litigation and business related matters. The law firm of Oppenheim & Pilelsky is located at: 1290 Weston Road, Suite 300, Weston, FL 33326 (954) 384-6114.
/Contact: Julie Silver or Christine Manna at Boardroom Communications, 954-370-8999, for Oppenheim & Pilelsky.
/Contact: Julie Silver or Christine Manna at Boardroom Communications, 954-370-8999, for Oppenheim Pilelsky.
