Salem Five, Maine State Housing Authority and atty Michael Haenn
Proof that a note holder and/or servicer would rather foreclose on a home than take the money.
For the last year or so, I have watched as MA-based Salem Five (servicer), MSHA (note holder) and Bangor, ME based foreclosure attorney Michael Haenn systematically stole a woman’s home in S. Berwick, Maine.
She had filed a Chapter 13 and entered into an approved plan. Over the course of the plan, Salem Five began refusing the woman’s direct payments to them yet continued to accept the payments from the bankruptcy Trustee thereby fabricating a default scenario and jeopardizing the woman’s house. Of course, they did not tell that her that they were holding her payments. They waited two or three months before sending them back. This would be a violation of Maine state bankruptcy law, among other things, if I am not mistaken. I do not know if the woman’s atty ever made the Trustee aware of this fact.
Despite atty Haenn’s best efforts, the woman was able to find a lender to refinance her mortgage while in bankruptcy, at least partially due to the fact that she has more than 50% equity in her property owed less than $80k. In fact, the property appraised out at $225k+ for the refi. However, atty Haenn began claiming that the woman was in default and began the foreclosure process this past June.
Her bankruptcy atty stood by and did absolutely nothing to protect the woman’s legal rights when atty Haenn began making simultaneous demands that the woman pay $8700.00 to bring her loan current AND sign a release and confidentiality agreement covering literally everyone from Salem Five and MSHA and their associates to the associates’ wives, children, hairdressers and dog groomers. It also “forbade” the woman from speaking to members of the media, “the FDIC, the Queen of England, and anyone and everyone else in the universe.” Only after signing this release and giving the $8700 to her bankruptcy atty to wire to atty Haenn, would he then bring the “settlement offer” to Salem Five for their approval, which tells me that Salem Five may not have as tight a set of reins on their legal counsel as they should.
For the last month at least, atty Haenn has flatly refused to provide either the woman or the mortgage broker with an accurate payoff amount. He has stated that HE and Salem Five would not accept a payoff should one be attempted by the woman and her mortgage broker. Last week, atty Haenn succeeded in running out the clock on the woman’s “right to cure” period literally the same day that the woman appeared before the bankruptcy judge to be heard on a hardship discharge in order to allow the refinance to take place. Once again, the woman’s atty did absolutely nothing to alert either the bankruptcy judge or the Trustee to the tactics that atty Haenn and Salem Five were using.
What may be even more ironic in this process is that the woman cares for the 45 yr. old Downs Syndrome brother at home and has done so for at least the last ten years when her mother could no longer care for him. atty Haenn sits on the Board of Directors of both Special Olympics Maine and United Cerebral Palsy Northeast. And yet, atty Haenn would rather steal the home of a physically and mentally handicapped man and his caretaker sister than accept a 100% payoff of the loan that he fraudulently foreclosed upon.
Why? Because he gets all of his atty fees and Salem Five and Maine State Housing Authority get to steal $130,000 in equity as well as the woman’s home.
Proof that a servicer and their foreclosure mill legal counsel would rather commit grand theft larceny and steal a home than accept a 100% payoff of a mortgage.