Dixie Mitchell Appears on MSNBC

On Saturday morning, Washington CAN! member Dixie Mitchell, a 71-year old cancer survivor, went on MSNBC to talk about her fight to save her home from foreclosure. She called on big banks to pay their fair share and spoke of how challenging it’s been to get a loan modification. Sign this petition to help Dixie save her home!

Dixie and her husband, Luster, have owned their Seattle home for 44 years. This is the same home where the Mitchells raised their nine biological children and cared for fifty foster children, and the house was paid off in full in the mid-1980s. When Dixie needed some money to make home repairs and to help one of the foster children in her care she took out a loan that was promised would work for what she needed.

But then the bank bundled and re-sold her loan. In the process Dixie’s mortgage payments grew astronomically. At this time her husband suffered a massive stroke, leaving him paralyzed. Due to her husband’s inability to work and the increase in payments, Dixie fell behind on her loan payments.

Despite Dixie’s best efforts (she’s filed for bankruptcy, attempted to get the loan modified on numerous occasions and sought help from counseling agencies), the Mitchell’s home is set to be auctioned on October 28th and they have no place to go. All Dixie needs is a small modification to the loan and she’ll be able to keep her house. The problem is that Ocwen Financial, who holds the loan, just won’t budge. Not because they can’t, but because they don’t want to.

Tell the Big Banks, enough is enough! Ocwen Financial will soon the be country’s largest holder of subprime loans. Ocwen is even a participant in a federal program to help modify loans for families affected by the housing crisis—but they still aren’t responding.

6 thoughts on “Dixie Mitchell Appears on MSNBC

  1. i had many problems with this company to and is currently have a lawyer .my morgage as been with this company seens 1997 an every year a had a problem with diferent things fees on top of fees .please investigate whats happening !!! also i took out a loan in the usa. and talk to india when i have problems.and nothing gets staighten out. and are govment know.but i wonder does india have are notes too!!!!

  2. This is a very sad story, along with the other millions of home mortgage foreclosures! Many people who were foreclosed on had lost their job and could no longer make their payments! However, there is more to this particular story. Any one who has ever had a home mortgage knows that reselling mortgages is common practice, but they don’t raise your payments or interest rate unless you SIGNED AN ARM MORTGAGE!!!! Wake up people! An arm mortgage is what has got a lot of people in trouble!!! It allows you to qualify for a loan you wouldn’t usually qualify for by allowing you to pay a lower interest rate for the first 1, 3, or 5 years, for example, after which time, the interest rate increases, which then increases your payment! And yes I hate to see anyone lose their home, but this is what happens when we allow government to get involved in all areas of our lives! Everything they touch that was once considered to be the private sector, turns to sh*t! There was a multi-billion dollar bailout, to help people losing there homes! Where the hell did it all go and who did it help? I’ve yet to hear from one person who got helped out by that! What I would love to see is the people in her community step up and help her thru personal donations. Which is how this country has always been! Yes, “those evil rich people”! Stop looking to the government for help! P..S. Since the whole mortgage crisis, the feds are now crawling up the ass of the bankers with so many regulations the average person can’t get a home loan now, which is contributing to the stagnant home sales, the same government who basically forced the banks to give loans, (FREDDIE and FANNIE) to those who couldn’t qualify for a traditional loan.

  3. My firm hear of her problem and we took on her case. The lender cancelled the sale and on 10-24 agreed to modify her loan from an ARM presently at 9.99% to a 2% 30 yr. fixed and extended the note maturity until 2046. The term predatory lending is used to describe many lender practices and in this case the loan truly was a cruel and ugly act exploitation.

  4. Thanks for your comment John! We’re SO happy you were able to work with Dixie and I’m thrilled that your firm was able to get the loan modified. We appreciate the help and support you were able to provide Dixie!

  5. Remember: The loan (aka note) and the security on that loan (aka mortgage/Deed of Trust) are two different contractual documents! If you don’t pay the loan the bank (as mortgagee) will foreclose you (as mortgagor) “on the mortgage” (the security interest). This assumes whoever is attempting to foreclose (the bank/servicer) “owns” both the loan and mortgage. Generally, the mortgage follows the note so whoever “owns” the note is presumed to own the security that goes along with it. However, what if the bank/servicer sold off your mortgage without the accompanying note? According to Powell on Real Property, sec. 37.27 [2] (Michael Allan Wolf ed., LexisNexis Matthew Bender 2010), you end up with an unsecured loan and a mortgage which is “a worthless piece of paper.”

    It must be remembered that the mortgagee has two interests: (1) the debt or obligation which is owned to him, and (2) the security interest in land represented by the mortgage.. In fact, the primary interest is the personalty debt obligation. The interest in land which is available in case security is necessary because of the debtor’s default is considered as collateral interest. Much trouble has been caused by mortgagees attempting to transfer only one of these two interests. Where the mortgagee has “transferred” only the mortgage, the transaction is a nullity and his “assignee,” having received no interest in the underlying debt or obligation, has a worthless piece of paper.

    What can you do to determine if that is the case? Here are some general suggestions:

    First: Determine who “owns” your “mortgage.” Since most mortgages have been sold by your original lender to Freddie or Fannie, check with them to determine if they “own” your “mortgage”. This can be done on line at either:


    Date and print a copy of the result for your records and future use.

    Second: Determine who owns the note. This is more difficult to do but there is an excellent free (no obligation) user friendly form letter anyone can use that was created by SEIU listing virtually all mortgage lenders. http://action.seiu.org/page/speakout/wheresthenote?js=false You fill out the letter on line and can email it directly to your lender. This form letter cites the federal Real Estate Settlement Procedures Act [RESPA] section 6 which mandates lenders acknowledge receipt of the request within 20 days and try to resolve the issue within 60 days. You can add to the letter the fact that Freddie Mac’s or Fannie Mae’s website indicate the “own” your mortgage. Despite RESPA, lenders may not directly respond to the inquiry. If the note was sold, it would typically need to be endorsed by the original lender and delivered to the buyer. This is the uniform state law governing assignments of negotiable instruments (e.g. notes, checks) [Art. 3 Uniform Commercial Code]. Several problems have been identified: no assignments, lost/destroyed originals, questionable assignments, etc. The problem with mortgages owned by Freddie and Fannie is they have “guidelines” that tell lenders/servicers to keep the original notes (not to assign, transfer or negotiate the original paper to Freddie/Fannie). However, those private “guidelines” are not the law and do not trump state law governing negotiable instruments.

    Third: Consider filing bankruptcy to wipe out the lender as an unsecured creditor. Assuming Freddie or Fannie “owns” your mortgage, then the servicer/lender/bank should be designated as a nonsecured creditor in a Ch. 7 (straight) bankruptcy and wiped out. If a Ch. 13 (wage earner/reorganization) the debt could be crammed down based on what the debtor can pay. By analogy, “mortgages” sold off by Countrywide to BOA were sold at a discount.

    Fourth: Consider filing a quiet title action IF you intend to sell the property – name Freddie/Fannie and wipe out that cloud on the title. Otherwise sit tight and pay your taxes. If the bank/servicer throws in the towel you would have to report the gain to the IRS. So you’re better off a housing zombie.

  6. Right on Shawn!
    I’m a homeowner and didn’t understand much of what you were saying because I haven’t been in foreclosure before but hopefully Dixie’s lawyer gets it and heeds your advice!

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