Foreclosure Defense | Consumer Litigation | Business Representation
Necak Case Summary
Tracey Strzala n/k/a Tracey Necak financed the purchase of her home for $178,000 in Medina County, Ohio in 2006 for a monthly payment of $1,381.30. She married her husband Josh Necak the next week and changed her name to Tracey Necak. Unfortunately, the companies servicing Mrs. Necak’s mortgage repeatedly changed, and due to interest hikes and other factors, the monthly payment ballooned to nearly $1,700 a month. Sometime in 2014, the Necaks fell behind by just two months, but they continued to work hard, consistently trying to make up the difference. In 2016, the Necaks remained two months behind, so the servicer, Select Portfolio Servicing (“SPS”), prequalified Mrs. Necak for a trial streamline mortgage modification plan. According to the plan, so long as Mrs. Necak made three trial payments at the reduced amount of $1,155.78 and submitted the necessary documents, SPS would agree to modify her mortgage loan, making the reduced monthly payment permanent.
Mrs. Necak made the three trial payments. However, SPS sent the loan modification paperwork to Mrs. Necak in the name of Tracey Strzala and required her to return the modification with a notarized signature. Mrs. Necak went to three separate notaries, but each notary refused to alter SPS’s modification document to reflect her current name. Despite verifying her identity over the phone numerous times to take her payments, SPS refused to update the name on the loan modification until Mrs. Necak emailed proof of her name change. SPS told Mrs. Necak that her marriage license would work. Mrs. Necak emailed her marriage license on two separate occasions in 2016. During this time, SPS informed Mrs. Necak that she successfully proved her name change and that it was sending her an updated modification with her actual name. The updated modification never came.
After a month of waiting and despite its prior assurances, SPS informed Mrs. Necak that she needed to send a copy of her marriage license for a third time. SPS represented that the copy of the marriage license it had was “obliterated.” It apparently took SPS over 30 days to review Mrs. Necak’s marriage license. What SPS did not tell Mrs. Necak was that it had already rejected her for the prequalified loan modification five days earlier, taking the position that Mrs. Necak had not accepted the offer in time. At this point, Mrs. Necak had made five payments at the reduced amount and was ready and willing to continue making that payment. Unfortunately, SPS demanded that Mrs. Necak immediately pay the difference of the regular payment and the five reduced-payment amounts in addition to the two months she was behind – a sum of over $6,000. Despite being misled and victimized by SPS’s bait-and-switch tactics, Mrs. Necak made more than the heightened regular payment for four additional months. Mrs. Necak used extra cash allocated for her daughter’s wedding and family savings all in an attempt to catch up and avoid foreclosure. Eventually, Mrs. Necak could no longer afford to make extra catch-up payments, and SPS referred her to legal counsel for foreclosure.
Kohl & Cook Law Firm LLC is a boutique law firm at the forefront of consumer representation and foreclosure defense. Contact the firm if you or someone you know is in danger of foreclosure. If a foreclosure is already filed and progressing against you, it is still not too late to get help. Contact Kohl & Cook.