MINNEAPOLIS - No settlement was reached during a hearing in Hennepin County court on Tuesday in the ongoing legal dispute between a Golden Valley woman and her mortgage companies.
Rose McGee, 61, tried unsuccessfully to have a modification to her mortgage with Citimortgage and Fannie Mae. The Occupy Homes Minnesota group has accused the mortgage companies of pursuing a "dual track," which means the company is claiming to be working with the homeowner, while also moving into a foreclosure proceeding.
McGee's attorney, Jonathan Drewes, argued before Judge Ann Alton that proper procedures under Minnesota statutes were not followed by Citimortgage and Fannie Mae.
"Our main issue here is that the disclosure papers, the state-required disclosure papers, were not provided as they are supposed to be provided by the statutes," said Drewes.
In Court, Alton insisted that proper procedures were not followed, including failing to provide multi-color copies of the documents in a particular font, as required by Minnesota law.
McGee filed a lawsuit to stop Citimortgage and Fannie Mae from foreclosing on her property, even though McGee has not made a mortgage payment in more than a year.
Attorney for Citimortgage and Fannie Mae, Michael Gooschlich of Indianapolis, told Kare11 that he believed McGee "wanted to live in her house for free."
The sides retired to the judge's chambers on Tuesday afternoon, but were not able to reach a settlement of the dispute. As a result, Alton set a new court date of May 14. McGee will continue to live in the house until then. McGee called the offer in chambers from the mortgage companies, "not affordable" and "not reasonable." In part, she said she had previously been offered a 40-year-loan in order to reduce the monthly mortgage payments.
Speaking at a rally in the Hennepin County Government Center, Representative Keith Ellison, D-Minnesota, called on Federal Fannie Mae and Freddie Mac administrator Ed DeMarco to resign or be fired.
"Because he is refusing to write down these loans which are in the best interests of the American people," said Ellison.
Occupy Homes Minnesota activist Cat Salonek told the two dozen rally attendees that it is "time for the bankers to go to jail." She said she had been arrested at another housing dispute.
"I went to jail. Why have not the bankers?" asked Salonek. "They have been destroying our communities and decimating families as they end up homeless."
Part of the Occupy group carried 330,000 petitions to the U.S. Courthouse a block away, led by activist Nick Espinosa.
"We are delivering some petitions as part of a national day of action to demand that the Obama Administration and (U.S. Attorney General) Eric Holder finally prosecute some of the bankers that crashed our economy."
(Copyright 2013 by KARE. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)