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I don't get it, if you owe $800,000 on a $1,000,000 piece of property, the math says you have $200,000 in assets. I don't get why they would be forced out, and the bank would not allow the sale.

Hero evicted after falling victim to an investment scam

Don't take this the wrong way, but being a hero does not insulate nor protect one from making poor investment decisions.

I hope their family takes them in while they sort this one out. Also, what the hell were the storm troopers thinking when they drew their weapons?

after the 282,000 and 80,000 ran out, how did they plan to make payments anyway?

which is why national bankruptcy laws should protect a home regardless. (ala FL) This couple would have been able to force the bank to wait for the sale of the home and get their equity out. Now the bank gets this old couples equity.

This article has some more information. It looks like these folks, for whatever reason, didn't act on the opportunities they had to resolve this earlier.

Thanks for posting this. I recieved this news as a forward, and would encourage all to pass it on:

If you have money in this bank, you might want to think about withdrawing it. If you have a mortgage with them, you should refinance with another bank! It could be YOU in this spot next time, and the bank won't care what you loose! Please pass this on to everyone in your address book, so everyone is warned.
BEAVERTON, Ore. - An elderly couple, swindled out of more than $80,000 by their accountant, were forced out of their Beaverton home by Washington County Sheriff's deputies. One week ago, [march 20, 2004] six armed deputies, said Ken and Trudy Reusser, broke down the door to their home, searched the house and asked the couple to pack their belongings and leave within the hour. Two of the deputies drew guns, said Trudy Reusser.

The officials removed the couple because the pair was unable to pay for the home, which sits on land once owned by Ken Reusser's grandfather.

"We thought we could retire there and have the kids come visit," said Trudy Reusser from her neighbor's home, where she and her husband have been staying. "Now we're strapped like a young couple starting out in life."

Ken, 84, a retired Colonel in the Marine Corps, fought for our freedoms in three different wars. He is one of the most decorated war heroes in Oregon. He earned forty-nine medals and ribbons in the process, including: two of our nation's second highest award, the Navy Cross, plus 4 Purple Hearts, Legion of Merit w/combat "V", 2 Bronze Stars w/combat "V", 4 Distinguished Flying Crosses, and an incredible 18 Air Medals. As an aviator, during his combat career he was brought down by enemy action five times and suffered life-threatening injuries. Ken and his wife Trudy, 65, said they trusted Robert E. Thomas, their accountant, to care for their finances. Instead, he took checks from their checkbook, wrote them to himself and deposited them in his own accounts.

Thomas, the accountant, was sentenced in May 2003 to a year in jail. He pleaded guilty to four counts of first-degree aggravated theft and one count of first-degree forgery exceeding $10,000.

The Reussers have tried to recover their money from the bank, but because they missed a 30-day deadline to file a complaint, Washington Mutual would not help.

The fact is, that the bank improperly processed forged and even unsigned checks against their account! So, the couple filed a civil lawsuit against Thomas and Washington Mutual, for gross negligence and breach of contract, in the Oregon Circuit Court, Washington County.

Olivia Riley, a spokeswoman for Washington Mutual, released a statement saying, "While Mr. Reusser's situation is unfortunate, it is not of our company's making."

Incredibly, although the bank hired James Laurick, of Kilmer, Voorhees and Laurick to represent them, the bank did not respond the to the lawsuit in a timely manner! They missed the 30 day statute and were actually in default. They did not even bother to show up in the courtroom, on the appointed date! State law requires that the plaintiffs win by default in such a case. This should have been good news for the Reussers', who were unable to afford an attorney, and despite each living on 100% disability, they represented themselves before the Court, and filed all the legal documents in a timely manner!

But, in another unfair twist of this case, Judge McElligott told his court recorder to call Mr. Laurick's office and ask why he wasn't there! The judge accepted the excuse of the lawyer, and allowed the case to continue! To further contribute to the absurdity, As Ken Reusser stood to leave the courtroom, he complained to the judge about the unfairness of the judge's action. Judge McElligott abruptly said: "that will be two days in jail for contempt," to the elderly Reusser. All the supporters were stunned and stood silent as the confrontation between Reusser and the judge continued. Reusser looking directly at the judge said in a challenging voice: "yes why don't you put me in jail"? The judge shot back: "that will be five, no six, days in jail!" The judge then told Reusser to sit down, that he was under arrest!!

Is this anyway to reward a Veteran?!

Judge McElligott, of course, ruled in favor of Washington Mutual Bank....the Reussers getting no justice.

The Reussers then tried to sell the home, but Washington Mutual told blocked the sale! Of course, making the Reussers unable to repay the mortgage, and allowing the bank to forclose!

Three years ago, the Reussers said they lost $262,500 in a high-yield investment they learned about from friends. That, along with the $83,383 they lost to Thomas, forced them to file for bankruptcy in August......

We may not be able to right all wrongs, but if you have money in this bank, you can help to right this wrong, by taking all funds out, and telling your branch why!

If this was a case of a $100,000 home with an $80,000 loan in default, everyone here would be packing up their tarbuckets and pitchforks to march on Washington Mutual headquarters; but, alas, jealously tempers indignity.

Not to sound hard-hearted, but why should this guy's war record matter? If he can't pay his mortgage, the bank has a right to foreclose.