A mortgage holder had a right to enforce a settlement agreement against borrowers, the Court of Appeals ruled Monday, affirming a trial court order.
Owners of an Ellettsville property negotiated a settlement agreement with Nationstar Mortgage after falling behind on payments and worked out a loan modification in 2009. A subsequent settlement agreement required the homeowners to pay Nationstar $19,000 by Feb. 1, 2013.
After some extensions, the sum went unpaid and the mortgage went further into arrears. A bankruptcy court ruled Nationstar was excused from its obligation to modify terms of the loan. The homeowners argued Nationstar abandoned the settlement agreement by claiming the owners owed the original loan amount in the bankruptcy proceeding.
“The Turners have not established that the trial court erroneously denied their motion to dismiss or that the parties’ settlement agreement should not be enforced as it relates to forfeiture,” Judge Michael Barnes wrote for the panel in Janet C. Turner (deceased), James R. Turner, and Jan Tee, Inc. v. Nationstar Mortgage, LLC, 53A05-1504-MF-139.