Judge orders parties back to court in mortgage case

The state Supreme Court justice who last month lashed out at a bank's dealings with an East Patchogue family facing foreclosure and canceled the mortgage on the home has ordered the bank and the homeowners back to court, records show.

Justice Jeffrey Spinner wants the parties to return to discuss a recent letter from IndyMac Mortgage Services that says $474,936.78 still is owed, according to legal documents obtained by Newsday.

Spinner's unusual decision to cancel the mortgage generated much attention. His ruling said the lender - a division of OneWest Bank, FSB - was "harsh, repugnant, shocking and repulsive"" in proceedings where the homeowners attempted to work out a loan modification.

This week, Spinner ordered that a conference be held Dec. 18 in Riverhead to explore "at length" the bank's letter, which was dated two weeks after his initial ruling.

Homeowners Diana Yano-Horoski and husband Gregory Horoski could not be reached Thursday.

After the first decision, Gregory Horoski told Newsday he was stunned that the decision essentially gave them the house outright, but that he worried the bank would appeal and prevail.

Spinner's latest order notes that the letter came after he "barred, prohibited and foreclosed" the bank from taking any action to enforce the mortgage and adjustable rate note on the Oakland Street house.