Just one more reason to rent...

[racegrrl714]

I don't know if this has yet been discussed, but I hadn't seen anything posted about it... but I just heard it discussed on the Tom Hartmann show.

www.huffingtonpost.com/2012/05/17/norman-rousseau-foreclosure-victim-suicide-wells-fargo_n_1521743.html

Norman Rousseau, Foreclosure Victim, Commits Suicide During Wells Fargo Lawsuit



Last Saturday night, Norman Rousseau reportedly spent hours trying to fix an old RV. He was facing the prospect of foreclosure, and he wasn't about to see his family forced onto the street. Then mid-morning, with the RV’s engine in pieces, he shot and killed himself, CBS Los Angeles reports

Rousseau, who lived in Newbury Park, California, has left a wife and stepson to deal with an ongoing battle with Wells Fargo, according to a lawsuit filed in January 2011 by Norman and his wife, Oriane (h/t Alternet).

“Our thoughts are with the friends and family of Mr. Rousseau at this difficult time. The eviction has been postponed and we will continue to work with Mrs. Rousseau," a Wells Fargo spokesperson said to The Huffington Post in an email. "Despite current reports, we tried repeatedly to find affordable options for the family."

The trouble started when the Rousseaus refinanced their mortgage, finding out much later that their interest rate actually increased after they did so, the lawsuit states. On top of that, the lawsuit claims that the couple was convinced to roll their credit card debt into the loan, ostensibly prolonging and increasing that debt as well, according to Chris Gardas, the attorney representing the Rousseau family.

At the time, the deal "tasted like honey" to Rousseau, who believed she and her husband had made a solid financial decision, Gardas told The Huffington Post.

Then in May 2009, Wells Fargo allegedly denied it had received the Rousseaus payment for that month. Later, the bank would change its story, blaming the mix-up on putting a stop on the couple's check, CBS Los Angeles reports.

What ensued were repeated and inaccurate requests for payment from Wells Fargo, along with excessive fees and a denied loan modification, according to the lawsuit. That climaxed in a lockout that appears to have led Norman Rousseau to his death, according to the lawsuit. The eviction has now been delayed two weeks, according to the family's attorney.




Oriane has no desire to stay in the home that's the scene of her husband's suicide, the family's lawyer says. She's living in a hotel paid for by local church members but, should that support run out, she may be forced to return until evicted.

Norman Rousseau now counts among the victims of the foreclosure crisis driven to tragic ends. Just last week, a Connecticut woman facing foreclosure shot her 85-year-old mother before turning the gun on herself, The Hartford Courant reports. The event is sadly reminiscent of a senior Ohio couple who, also facing foreclosure, were found with fatal gunshot wounds.

Wells Fargo has originated a third of all residential U.S. mortgages, the most in the country and triple the share of the runner-up, JPMorgan Chase, according to Bloomberg. The bank is also one of five that agreed to pay a $25 billion settlement over allegations of mortgage fraud. It recently received a $3.1 million fine for “highly reprehensible” behavior related to one Louisiana man’s mortgage.

Wells Fargo isn't likely to suffer similar punitive damage here, the family's lawyer told The Huffington Post. "Instead, everybody just says they're doing their job."

As of last night, Mrs. Rousseau told Gardas that she has yet to hear personally from a Wells Fargo spokesperson.

[downtoearth]

Terrible situation, but what is a "lockout" for a loan? I guess I don't understand - they willingly refinanced for a higher rate with credit card debt added, then a mix-up about a payment sent them into a spiral where the mortgage company stopped letting them pay?

[racegrrl714]

Honestly, I don't know what the "lockout" is that they are talking about in this article either. I just know from what they were saying on the radio, that they paid every month, on time, with a cashier's check... and one screw-up where a WF employee didn't credit their mortgage correctly led to this downward spiral. On the radio show, they said that WF illegally forged some of the mortgage docs, stating that their income was significantly higher than it is so that they would "qualify" for the loan and also they were quoted one interest rate and found out later that they were being charged much more. At least from what I gathered.

[wrathofkuus]

I am irrationally angry that this guy killed himself and left his wife to deal with the financial mess.

[ttt]

May 17, 2012 16:13:24 GMT -5 wrathofkuus said:

I am irrationally angry that this guy killed himself and left his wife to deal with the financial mess.

Seriously. I bet he didn't even have life insurance.

[ttt]

May 17, 2012 16:36:29 GMT -5 @littlemoxie said:

I don't see how this is really about decisions to rent vs. buy. The same thing can happen with student loans, credit card debt, etc. The bank fucked up and then made these people's lives suck and some resorted to suicide. Just like someone could have if collectors for other debt wouldn't stop writing or calling.

This is true too. Has anyone else seen the documentary Maxed Out? It's about the credit industry and there was a part in there about people who killed themselves because they were overwhelmed with debt.

[emisi]

May 17, 2012 18:47:53 GMT -5 ttt said:

May 17, 2012 16:13:24 GMT -5 wrathofkuus said:

I am irrationally angry that this guy killed himself and left his wife to deal with the financial mess.

Seriously. I bet he didn't even have life insurance.

Would it have mattered? I thought you couldn't collect if the insured killed himself.

[druidp]

May 17, 2012 16:36:29 GMT -5 @littlemoxie said:

I don't see how this is really about decisions to rent vs. buy.

This. Seems like a non sequitur.

Was the "lockout" them locking them out of the home, perhaps?

I'll be interested to see how this pans out. Yes, a financial institution can absolutely intentionally screw you &/or make errors that screw you, but you also have to be somewhat cognizant of your financial decisions and their consequences. And if they're rolling credit card debt into a refi... something tells me they had spending issues already. I'd like more background.

[ttt]

May 17, 2012 19:04:20 GMT -5 emisi said:

May 17, 2012 18:47:53 GMT -5 ttt said:

Seriously. I bet he didn't even have life insurance.

Would it have mattered? I thought you couldn't collect if the insured killed himself.

I think it depends on the policy. Some will pay out for suicide if you've had the policy a number of years.

[racegrrl714]

I apologize for the post title. It was just the first reaction I had in my brain to the story...