Foreclosure Foul-Up Wins Man a Free Home

Amid all the foreclosure horror stories, every now and then we hear about a good outcome, whether it's by winning a lawsuit through a homestead loophole, because the lender didn't properly serve the owners, or because it doesn't really own the mortgage. Or in the case of one underwater Florida homeowner once facing foreclosure, the bank is simply walking away. The house is his, free and clear.

That's what happened to Perry Laspina and an investment property he owns in Jacksonville, Fla. He was facing foreclosure after the 9.5 percent adjustable rate mortgage spiked, sending his payments from $605 to $1,058 on the $72,000 mortgage, reported the Florida Times-Union.

Despite Laspina receiving an extremely high mortgage rate for the time period, he told the paper, it didn't matter. "I figured I'm going to flip this house within six months, maybe three months," he said about his 2006 purchase during the height of the housing boom. After tearing up carpet, refinishing hardwood floors and painting walls, he hoped he'd fetch about $120,000 for the 1,120-square-foot home he purchased for $80,000.