Negotiating on foreclosure, then locked out in a blizzard

  • Article by: ABBY SIMONS , Star Tribune
  • Updated: December 9, 2009 - 10:23 PM

-Minneapolis Housing Court ordered a California bank to let Leslie Parks back in to her mother's duplex. She was close to reclaiming the property when she was locked out.

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A Minneapolis woman who was negotiating with a lender to find a way to stay in her foreclosed house arrived home from work during Tuesday night's blizzard to find that the locks had been changed.

After spending the night at her mother's, Leslie Parks went Wednesday to Hennepin County Housing Court, where a referee ordered that she be allowed back into her mother's former duplex at 3749 Park Av. while negotiations continue.

Locksmiths on Wednesday reconfigured the locks that had been changed Tuesday by a contractor for OneWest Bank of Pasadena, Calif., (formerly IndyMac Federal Bank). The bank became the owner of the property when it was foreclosed upon last summer..

Since then, Parks and her advocates have been in negotiations with OneWest to allow Parks to buy the property.

Advocates for Parks say her mother, Tecora Parks, who owned the duplex when it went into foreclosure, was duped into refinancing the house with an adjustable rate mortgage when she had to pay for city-ordered window upgrades for her rental property.

Tecora Parks was warned she had until Nov. 30 to pay the mortgage balance or her daughter would be evicted. Advocates thought that process was put on hold as a result of their negotiations with Burnsville attorney Ryan Krumrie, who represents the bank.

In a Nov. 25 e-mail to Leslie Parks, Krumrie said OneWest was in the process of rescinding the May 29 sale of the property and hoped to reach an agreement to keep Parks in the property, apparently with help from Habitat for Humanity.

"You expressed concern that at the end of the redemption period ... you and your mother will be evicted from the property, Krumrie wrote. "Rest assured, that will not take place due to the rescission of the foreclosure sale."

Krumrie declined to discuss the case Wednesday.

Linden Gawboy of the Minnesota Coalition for a People's Bailout said Parks and her advocates met Nov. 30 with representatives of the bank and Habitat for Humanity to discuss a possible "short payoff" in which Parks would pay an amount less than what is owed on the duplex. An appraisal was set for Friday, but then the were locks were changed.

"We were absolutely blown away," Gawboy said. "We were having our biweekly meeting, and everything was going on as planned. We were discussing our negotiations, and we got this call. Everyone was shocked. We didn't know if it was retaliation for making this public. It was unbelievable."

Parks filed a petition Wednesday morning in Housing Court, asking for damages. A Dec. 16 hearing is scheduled. Should OneWest be found in the wrong, Parks may be entitled to triple the actual damages, attorney fees and a civil penalty of up to $300, according to the referee's order. In the meantime, negotiations continue.

Gawboy said the referee's action is no surprise.

"Intimidation tactic or not, it was so illegal, and it was generally acknowledged by everyone that it was absolutely wrong."

Abby Simons • 612-673-4921

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