A Judge wiped out a $525,000 mortgage that a Long Island couple owed to a California bank.  The Bank had received $814.2 million in federal bailout but had a record of being coldblooded in foreclosing in people who owed it money.

The Judge called the banks actions “harsh, repugnant, shocking and repulsive.   So the Judge decided to punish the bank by wiping out $291,000 in principal and $235,000 in interest and penalties.

The couple who been paying only interest on their mortgage and had no equity in their home.  They had begged the bank to let them restructure their loan.  The bank refused to work out a deal and eventually foreclosed on the property.  After the foreclosure, the couple manage to get Court to allow a settlement conference.

The Judge canceled the debt because the bank “must be appropriately sanctioned so as to deter it from imposing further mortifying abuse against [the couple].”

The bank is involved in a similar case in California, where it’s trying to foreclose on an 89-year-old woman, despite two court orders telling it to stop.  So who is this bank.  Its the OneWest bank which is owned by a private equity group.