Jan 17, 2011

Elderly NJ woman charged 5800 after missing final mortgage payment

This appears to be an egregious attempt to fleece an elderly woman.

A New Jersey woman was billed $5,800 after missing the final payment on her 30-year mortgage.

Lawyers for 85-year-old Dorothy Rhue Allen say the fees charged by two banks and a law firm violate consumer-protection laws.

The suit says LaSalle Bank and Cenlar Federal Savings Bank started foreclosure proceedings in 2007 after the hospitalized Allen missed the last $432 payment on her Deptford, N.J., home.

The banks advised her lawyers she could pay $5,800 to avoid foreclosure. But her lawyers instead sued over the fees, and the foreclosure action was dropped.