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Lender admits foreclosure letter sent in error

Foreclosure is reinstated for the Horoskis of East

Foreclosure is reinstated for the Horoskis of East Patchogue after an appeals court protected the "sanctity" of a contract. (Nov. 25, 2009) Credit: Joel Cairo


A California mortgage company admitted Friday it goofed when it sent an East Patchogue couple a letter demanding nearly a half-million dollars - even after a Riverhead judge said the couple did not owe the company a penny following a foreclosure dispute. A spokeswoman for OneWest Bank, the corporate parent of IndyMac Mortgage Services, said the letter was prepared before the judge's ruling. "That particular letter was sent incorrectly," she said.

Gregory Horoski and his wife, Diana Yano-Horoski, had their mortgage canceled last month by state Supreme Court Justice Jeffrey Spinner following a dispute with IndyMac. The company has appealed the ruling.

The judge excoriated the Pasadena, Calif.-based company's "harsh, repugnant, shocking and repulsive" tactics in proceedings where the Horoskis attempted to work out a loan modification.

Earlier this month, two weeks after Spinner's ruling, IndyMac sent the Horoskis a letter that claimed the couple still owed $474,936.78.

Spinner ordered the parties back to court to explore the bank's letter "at length." But before a scheduled hearing could be held Friday, the bank owned up to its mistake.

"It was sent in error, and we let the family know," the OneWest spokeswoman told Newsday. Richard Horoski declined to comment Friday.

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