Judge: $10K for post-Katrina debt harassment - MSNewsNow.com - Jackson, MS

Judge: $10K for post-Katrina debt harassment

CHALMETTE, La. (AP) - A state district judge says CitiMortgage Inc. cannot collect from a couple who defaulted after Hurricane Katrina destroyed their house, because it had no copy of their mortgage.

Judge Robert Buckley also ordered CitiMortgage to pay David and Rebekah Cefalu $10,000 for years of what Buckley called harassment.

A real estate attorney unconnected to the case says that if the ruling is upheld, it will be "enormous."

CitiMortgage's attorneys did not immediately return calls for comment.

Rebekah Cefalu says she and her husband notified CitiMortgage immediately that they couldn't make payments. She says they couldn't work out a payment agreement.

She says daily calls from the company increased to an average of 3 a day after they sent in a $20,000 insurance check.

Copyright 2010 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


Powered by Frankly