Foreclosures Not Sparing Wayne Prosecutor

August 25th, 2008 | Tags: Foreclosures

When an epidemic advances it makes no distinction. It is the same with the latest housing crisis that is making no differences between lenders and borrowers, governments and communities – all are suffering. Foreclosures are not sparing even the prosecutor of Wayne County.

Kym Worthy is the prosecutor of Wayne County. She has a house in northwest Detroit. It has gone into foreclosure and she is about to sell it to the mortgage company. Recently Wayne made a statement regarding this foreclosure. She said that the transaction was in the nature of a short sale. She was waiting for the green signal from the lenders to proceed with it. Talks are on with Countrywide Financial for the finalization of the short sale.

The foreclosure is a judicial process by which the lender seeks the permission of the court to seize the mortgaged property and realize unpaid dues. But in the mood of the present market it is difficult, if not impossible to sell. Moreover the foreclosure is a costly process that takes up a lot of time. So the lender usually agrees to a short sale in which the sale price is often less than the loan amount. The bank waives aside the balance and is happy to get what it can.

Worthy said, “A short sale for my home is pending acceptance by Countrywide, and there is an offer to purchase the property.” She further added that talks are still on with the officials of Countrywide. The officials of Countrywide were not available for comments.

According to Wayne County treasury reports Worthy has also fallen behind in paying property tax on her house to the tune of $7,600. In 2004 she had bought the house for $337,500 as per Registry Deed records.

From this April of 2008 her financial troubles had started. Anonymous automated calls came over the telephone alleging that she had pocketed $128,000 a year and yet owed thousands of dollars in taxes. Moreover her child went to an exclusive private school. Her current salary is higher than what is alleged – it being $154,521.

Worthy admitted that she did owe the fed tax money and there was a lien on her property. The liability arose when cashed in an IRA in 2003 to fund her efforts to get the post of prosecutor. But she was current in her payments. During 2006 and 2007 she owed on her rental property. She terms the whole episode as a campaign to malign her name.