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GreenTree mortgage reverses itself and pays gay survivor

Greentree Mortgage tried to foreclosure against a gay widower, saying the survivor was not protected by bankruptcy protections because he was not formally "married."

The mortgage company finally reversed themselves rather than disclose their homophobia in court.
GreenTree Mortgage Suddenly Reverses It's Homophobia and Pays off a Gay Survivor

GreenTree Mortgage just informed a gay widower that they are dropping the claim stating that he wasn't protected in bankruptcy court because he wasn't "legally" married.

"Greentree isn't the easiest mortgage company to deal with," says Jason Reynolds, Executive Director of the Oregon Consumer League. "But this attempt to hurt a consumer with a homophobic argument is a new low."

The widower was represented by pro-bono attorneys, headed up by Michael Fuller, attorney with Portland law firm OlsenDanes.

The case took an unexpected twist yesterday, when Green Tree suddenly agreed to withdraw its motion, rather than testify under oath at its corporate deposition.

Apparently they didn't want to go on the record with their anti-gay 'logic'," Reynolds noted.

Court documents show Green Tree settled the matter after the homeowner sought sanctions against it in bankruptcy court for making frivolous legal arguments.

As part of its settlement in the case, Green Tree also agreed to reimburse the homeowner's pro bono team $2,000 in litigation expenses.

Representatives for Green Tree had no comment.

"I'm just glad Green Tree eventually did the right thing, even if it was just to avoid being sanctioned," says attorney Fuller.


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