Judge Wipes Away Half Million In House Debt

In a legal twist that resembles the game show Who Wants To Be Absolved Of Their Predatory Mortgage, a New York judge zapped away more than $500,000 a couple owed OneWest Bank on its house, ABC News New York reports:

Greg Horoski and wife Diane Yano-Horoski, who fell behind on their mortgage payments because of health problems and an interest rate change, say they tried repeatedly to restructure their loan, but that the bank would not cooperate.

The Horoskis were freed of $291,000 in principal and $235,000 in interest and penalties.

This sure is one way to stop the foreclosure epidemic in its tracks.

Judge erases Long Island couple’s $525,000 debt [ABC News New York]

Want more consumer news? Visit our parent organization, Consumer Reports, for the latest on scams, recalls, and other consumer issues.