Cox Proposes Legislation to End Predatory Mortgage Practices
Current Virginia Law Offers No Protection to Homeowners

Glasgow, VA – David Cox today stood with Mrs. Louise Sledd and her attorney to shed some light on the predatory and immoral practices of some mortgage servicers operating in Virginia.

Since the fall of 2000, Mrs. Sledd has repeatedly been threatened with foreclosure and having her home sold at auction for alleged failure to make mortgage payments. Her monthly payments have repeatedly been held without being cashed, or simply returned to her by the mortgage-holder. She also found mysterious fees added to her bill for unneeded services such as photographs for foreclosure advertisements. Courts have repeatedly thrown out these additional fees, but companies continue to assess them.

Despite legal action and thorough proof of on-time payment, the harassment continues.

“What EMC Mortgage Corporation and others have done to Mrs. Sledd over the past five years is morally reprehensible. The state government needs to be taking decisive actions to prevent EMC, and any other mortgage servicers, from conducting business in such a dishonest way. When a person is fulfilling their financial obligations and paying their bills on time, they should know they are secure in their homes. They shouldn’t be checking the newspaper to see if their home is being auctioned,” said Cox.

Mrs. Sledd and her late husband originally obtained the mortgage in 1998 to make home repairs and pay off other household bills. The mortgage since has been sold numerous times to various lenders, with the problems following.

“All I want to do is make my mortgage payments and live in my home in peace. I really don’t think that is too much to ask. It’s not right that companies can just decide to not accept your payments and then try to take your home,” said Sledd.

Robin Mayer, an attorney with Blue Ridge Legal Services handling Mrs. Sledd’s case at no charge, showed a file nearly six inches thick with receipts and communications with the various mortgage companies. “We have years’ worth of receipts to show payment,” Ms. Mayer said. “This is not on Mrs. Sledd. What they did with the checks once they received them is up to them. Every month we sent the same letter with the check. Mrs. Sledd has done her part. It’s bad enough to lose your home when you have not made payments. It’s unthinkable to lose your home when you have made your payments.”

Cox called the press conference to continue drawing attention to Mrs. Sledd’s case and others like it and to announce actions he has taken and will take.

“I have already contacted the Better Business Bureau, the Virginia Attorney General’s office, the Virginia State Corporation Commission, and the Governor’s office to report the situation. Those organizations are taking the limited actions they can. The difficulty is that there is no specific legislation protecting Virginia’s home owners from these types of scams,” said Cox.

“That is why the first piece of legislation I submit in the House of Delegates will be to hold mortgage servicers criminally liable for willingly and knowingly declining payment with the intent to foreclose or to gain additional late payment or service fees.”

Virginia currently has laws governing the establishment of mortgages but no regulations covering the servicing of mortgages.

“Government needs to protect the rights of citizens against predatory lenders and as delegate I’ll be sure that it does,” said Cox. http://www.rockbridgeweekly.com/rw_article.php?ndx=2152