Marine Corps veteran Bill Twyman fights bank to keep his house

By Mike Owens

ST. ANN (KSDK) -- A 21-year Marine Corps veteran is bankrupt because the Marines fouled up his pay for months and his bank would not work with him on a foreclosure.

The bank got its deal last year, a $1.75 billion bailout from the federal government, but no bailout from M&I Bank of Milwaukee for veteran Bill Twyman.

Twyman says what happened to him is like an episode of the "Twilight Zone," and after months of struggle, he's getting paid again and has his house, but his credit is ruined.

Twyman's troubles began in late 2007 when the Marines said illnesses would end his military career. He had a form of glaucoma, arthritis in his knees and post traumatic stress disorder. After 21 years, the Marine had to retire. He was eligible for disability and a lump sum discharge payment. In addition, he was going to stay on the Marines payroll while he was being treated for his medical conditions.

But that's when the wheels started coming off.

The Marines fouled it all up, according to Twyman. His pay was held up at an office in Washington, or in another office in Virginia, or there was a computer glitch. His commanding officers called headquarters trying to get his money for him, but no such luck. Twyman had fallen into a very large crack.

As this was going on, he returned home to St. Ann, where he lived in the home he grew up in. He was going to school, learning to be a firefighter, and now works as a volunteer at the Kinloch Fire Department, arthritic knees and all.

But he did not get paid, and his bills were piling up. In fact, his health started being affected; he did not eat. Twyman said he was unable to keep food down because of the stress of waiting for his pay and watching the bills pile up.

Then M&I Bank started demanding payment on his mortgage. He tried to work with them, like the government worked with the bank last year. But the bank wanted its money, not excuses about back pay or arthritis or 21 years in the Marine Corps.

Days before foreclosure, Twyman went to a lawyer at Legal Services of Eastern Missouri. Lawyer Lynn Travis was able to swing into action, hoping the bank would hold off on foreclosure. Travis and Twyman said the bank's lawyers were willing to negotiate, but the bankers in Milwaukee wanted their money.

Instead of money, the bank got a debtor in default, and eventually in bankruptcy. That was the only solution for Twyman: declare bankruptcy to keep his house. In doing so he lost his good credit rating.

Twyman said he's getting back to normal. He's gotten all his back pay, almost, and he's getting the disability payments he's owed.

On Friday afternoon, the Milwaukee bankers responded to NewsChannel 5's inquiry about why they wanted the house. A representative said Twyman did not own the house when it was foreclosed upon, and the circumstances are more complex than indicated by Twyman or his lawyer. Finally, the bankers said they cannot offer any further comment because of client privacy rules.