Bank Forecloses On Elderly Woman Over $49 in Unpaid TaxesAnd the taxes were actually paid There are some stories that are so over the top as an example of the brazen disregard for human dignity that they defy imagination. But, we know that truth is stranger than fiction . . . and this latest event is certainly proof of that. Foreclosure fraud has become institutionalized within a corrupt banking structure; it began at the top withbanks such as BoA and has trickled down into nearly every community. For example, one couple had their home in Tampa foreclosed on even after they had paid off the full amount in cash. Countless others have been victims of mortgage payment modification schemes. However, the predatory nature of what is happening to 75-year-old Aron Ezilla Ridge in Travis County, Texas might in fact be what one news outlet is calling The Saddest Story You Have Ever Heard. This story involves a mortgage company, but it also has a scary link to property taxes that should raise questions about the very nature of home ownership. Back in 2010, at the peak of Foreclosure-Gate, a few members of the banking consortium went on record to deny theirresponsibility for creating a system that might have given mortgage holders a raw deal: Regardless, she had paid off her mortgage 20 years ago, but needed repairs for which she did not have the immediate cash. She entered into an agreement for a reverse mortgage of $39,000 with a nationwide mortgage lender called James B. Nutter Co. A reverse mortgage is geared toward those who are 62 years and older, and essentially serves as a revolving credit line with title still held by the homeowner rather than with the lender as it would for a typical mortgage. Instead of the borrower making payments, the lender pays the borrower with the promise that the loan is to be paid at the time of death or sale. It hasnt been so cut-and-dried for Ms. Ridge who is now the plaintiff in a case against James B. Nutter Co. after payment of her property taxes came into question. This confusion, which has every indication that it was created by an outside party, gave an opening for Nutter Co. to pounce via the acceleration clause. Ms. Ridges home officially went into foreclosure Jan. 30th, 2013. Unbeknownst to many older homeowners who take out reverse mortgages (especially those who have a 6th-grade reading level), an acceleration clause is there to ensure immediate payment. However, it is supposed to only be triggered upon the sale of the home, or death. Nutter Co. are invoking this due to supposedly unpaid taxes. Ironically, Financial Web defines this clause in the following way: Its hard to imagine this situation getting any more convoluted . . . but it does. Not only is the lender looking for immediate payment of the original loan of $39,000, the company seeks that amount, plus interest, fees, and subsequent attorneys fees that total more than the actual appraised value of her home. In essence, she couldnt even sell the home (or die) to pay off what is being demanded. Lets hope this sad story has a happier ending. Well keep you posted. Please use the comment section below to tell us if you, or someone you know has been faced with a similar predatory lender. Main source for this article, with additional must-read information: Other sources highlighting reverse mortgage scams: Read other articles by Joe Wright Here 