Submitted by an American Homeowner:
The most crushing thing to me has been the judgement. Every single situation has a story behind it and they are NOT all bad.
Who is the “real” enemy here? Those who were spoon fed the American Dream and wanted a *home*? Who had poor education and were guilty of trusting their lender/broker? Who lose the roof over their head and everything else, which is terrifying!! Will I go to jail because of my bills? Will I lose my kids because I am homeless?
Yep, I am sure that those people, my people, are evil selfish and stupid.
Please people. Hold a bit of compassion for your fellow humans!!! I know that everyone is suffering economically (EXCEPT CEO’S AND THE BIG BANKS!).
I am not saying to “hate” banks. I am asking that we try understand that we do not have to hate people. Some were malicious, some always are. They tend to get the most attention and offer a scapegoat that takes our focus away from real problem solving and learning from mistakes, our own or others.
I will tell you my story in brief. Had to relocate for husbands first position at a University, thought we were going to stay forever…bought a condo in South Florida, THE CHEAPEST three bedroom in the county and renovated it myself while caring for my infant son.
Due to a family emergency, we had to leave after a year. Listed the place at a loss to move quick and in our new area we lived in a one room basement that a kind family offered us. This was not a solution though but we hoped it would buy time.
Found a house with 50% equity and was told in writing by our lender rep. that we were preapproved for a $170k equity line which we planned on using to short sell the South Fl. condo at a loss to ourselves.
Our Credit Scores are 830/850. Owned 8 primary homes in my 35 years (started young), NEVER late. I have never had a credit card. I have worked my butt off as a single mom for many years putting myself through college and my child in private school. I never took out a student loan. I even lent my parents money to help them buy a home. I am not from a wealthy family, my single mother never graduated from college. I did it on my own…
Then….I moved to Florida. It has ruined me. I have always put 20% down and had 30 year fixed rate lending, they tried to get me into some funky loan but I do not believe in credit and try to own as much of my homes that I can.
Well, that lender who told us we were going to be fine and were approved for $170k? Came back and told us that he was sorry (and I believe he was, he is a nice guy) but that he had failed to consider our debt to income ratio.
We have nothing left. Nothing. Rather than work something out with us, we too were told we were not behind so nothing could be done. Rather than….ooooohhhhh giving us a bridge loan for all of 5 min. then reworking it so that the dear bank can sell it to that grouchy Fannie Mae (Who I would like to kick in the Fannie), we were told…get this…
That they are going to foreclose on our condo, and then file a deficiency judgement against our new home because of the equity it has in it (Which it has because we were trying to do the right thing!!!! And we were going to give them the equity!) After the deficiency judgement is filed, they will move to foreclose on this home and IF there is anything left, we will get it.
I do not want to be kind to these banks. I have to set healthy boundaries and this is out of control. We did not buy beyond our means, we were pulled under by corrupt lending and caught in the crossfire of those who were either hunters (ie: get rich quick investors) or prey (Not taught how to read the kind of language that is printed on those 863 pages you sign when you buy a house.
Everyone is a little bit wrong and everyone is a little bit right. Lets stop being mad/judgemental/hateful to one another and start trying to fix this mess. I have lots of ideas but they fall on deaf ears of people screaming so loud they can’t hear…there are solutions, not easy ones but ones that will heal our nation and ourselves.
Thank you, if you made it this far, for hearing me. I am the face of those people that are judges so harsh.
One other thing. I could have used a credit card, my husband has one in a block of ice for emergency, it has a 13k limit, to renovate the crack-house I bought that was in awful shape.
I did it all myself, plumbing, heartpine wood floor, cabinets, electric, paint…all of it. It was one of the hardest things I ever did (Hubby had to travel a lot so I did most alone). I was isolated, cared for two kids, got no sleep…and somehow loved it also. My 3 bedroom, 1000 sq ft. mansion.
I feel rich. I am rich. I have a home.
That feeling, is why people made poor choices and wanted to believe so badly…did not stop to think clear. For those who have always taken it for granite that they will have a house, or have had one given to them, or who can choose on anything other than cost…this may be hard to understand.
Not that there is anything wrong with things being easy!!! I wish they were
We are not all selfish
{ 19 comments… read them below or add one }
American homeowner you are not alone….
It reiterates what alot of us are going through…
I wish you and your family the best…
I am in Miami, FL and trust me I know exactly how you are feeling.
Hi,
I’m in the same foreclosure boat but with a bit of a twist. My foreclosure will be due to divorce and job loss. When my husband left, he took our savings and I tried to pay everything on my salary alone. I asked in the divorce papers to be repaid my half of what he took since we saved it together, but he’s sent nothing, zippo, zilch. In March, I lost my job and have not been able to find another just yet. I listed the house FOR SALE in March after I lost my job hoping to sell quickly enough and get out of this ‘alive’ so to speak. I’ve called Countrywide, but since I am not yet delinquent, they will not talk to me and when I’ve asked to be escalated to a supervisor or manager, I was hung up on. One “gentleman” flat out told me, “Don’t call us, we’ll call you”. I thought these kinds of calls were recorded?
I do not have enough money for a full payment for June’s house payment which is due no later than June 15th. I will be late for my first house payment this month.
I have two questions:
#1) My current credit scores are: 820 769 & 749. What will this first late payment do to my scores? Will I take a 50 point hit? A 75 point hit? What about the 2nd and 3rd months? Since the house is not selling (despite lowering the price to almost what I paid for it in 2004), I can only believe the foreclosure cliff is where I’m headed.
#2) Since I have only my unemployment now (and that only covers utilites and insurance), I was wondering if anyone has had any experience with Countrywide working with them on a deed in lieu of foreclosure? I would much rather sign the house back over to them and both of us go on with what’s left of our lives than to string this out any further. The stress this has taken on me has been incredible. I’ve lost a husband and marriage, my job and security, and now, my home and my credit rating. I wonder, what’s left for anyone anywhere to take from me? And what will become of me in the future? How will I rent an apartment? How will I replace my car when and if anything happens to it in the future?
Where are all of us who are going thru foreclosure going? Where are we all living? Why aren’t there any stories or news reports about the faces of foreclosure? I need to know what my future looks like and is it as bleak and scary as I think it will be. How does one ever recover from something like this? Is rebuilding credit even possible after an event of this magnatitude? I am not, nor have I ever been an irresponsible person. I was a single parent working 2 & 3 jobs for 19 years, my son currently serves in the U S Army and is stationed in Iraq, I pay my bills in full on time, every time. I understood the home buying process and obtained a 6.25% interest rate on a 30 year fixed mortgage with my good credit, stable history and work references. I understood the game. I’m not claiming ignorance or preditory anything. I accept full responsibility for what’s happened. I just need to know how to play the game from here. What in the world do I do now?
Thanks in advance for any and all assistance. I am grateful.
Have a good day,
Christina
Christina,
Thank you for your honesty, and let me just say, that you wrote every part of what I am thinking as well.
I am a single Mom facing the same issues. Although it may not seem like it, your words helped me, to know I am not alone.
God Bless You
Tricia
Tricia & Christina
you are NOT alone !!!!
what about those of us who truly have been through a hardship, trying to raise our children and saving our home???
what then?
What are the banks and the hope department doing about us?
are we just a # on the pile?
Yikes!
You wonder just how ugly this thing is going to get.
Tricia,
Girlfriend, you are not alone. I felt the same way for the longest time. I am sincerely grateful to this website for allowing us to find others like ourselves who are also in the same situations. This is the hardest thing I’ve ever gone thru; and as a single parent, you know how tough it is. I would rather go back to the days of working 12 and 14 hours just to provide for my son. At least I knew my way around THAT world. This, this is just plain scary and I understand exactly how you feel.
If you ever need to talk………I would be happy to give you my email address. You are in my thoughts. Hang in there, Girl!!!
All My Best,
Christina
Carrie,
I can only imagine that the circumstances which led us to our current situation mean nothing to our mortgage holders. Business being business, they cannot afford to care or it would cost them money. Therefore, we are at their mercy. With our credit, with our sanity and with our futures. Sad, but true.
If you need to talk more, please let me know. I don’t have any answers………I’m still trying to figure all this out for myself; but if you need an ear or a shoulder, I’m here.
And as I find out information, or have an update on what is happening to me in my situation, I will be sure to post.
All My Best,
Christina
i have an idea that might be useful/not: there is a special VA/ARM…as of today tues. 3jun08 the rate is 4.5-4.75 fixed for the first 3 years. the difference btwn. this and a traditional arm is that it resets yearly so a lot of principal is paid off in the first few years. it can only increase at 1%/yr w/ a max of 5% increase. in order for that to happen it would have to increase for 5 consecutive years. I know u r not in the military, but your son is. so perhaps he can use his v.a. certificate and purchase the home from you w/ a v.a. loan and at some point u can buy it back from him with that great va arm rate since va loans are assumable. all it takes is a power of attorney, most likely a specific one. perhaps that or him just buying the home from you till you get over your hard patch will help see u through this!
Great questions by the way…i’m wondering the same things. where are the others going through the murky foreclosure process? it’s such a mess! and I’m not happy that i’m entering the arena myself. I can’t wish you luck, I just don’t know what to say in these situations. Tragic + unfair and what a stupid process is all that comes to mind. the future is going str8 to hell.
Christina,
I understand your frustration, I just went 30 days late for the 1st time today, we have been in our home for 8 years, we have a fixed rate as well, my husband lost his job in Oct 07, I have a small business and the economy has affected it as well, although my husband got a job at the end of April, he now makes in 1 month what he used to make in a week. I found a number on Countrywide’s website for hardship, I started that process back in February, I have been given the run around ever since, literally hours on the phone, either on hold or being transfered ,today alone to six different people, 57 minutes on the phone and at one point I was outsourced, to I am quite sure to someone outside of the U.S.A.
One girl told me to cut our expenses, not sure if I should give up food or electricity, or get second jobs, believe me when say we are both looking for those second jobs, us and everyone else. I wish I could give happy news, but they are difficult. I think the best thing to do is to continue to educate yourself in this, that’s what I plan to do. I agree, we do need to have a face and a voice, and I will not give up without a fight. Good luck & Blessings.
Tammy,
Bless you for your kind suggestion. I’m not sure this would work for me, tho, as my son was the victim of identity theft last year. He currently has his hands full trying to sort out the mess created by someone else using his information. He’s tied up in knots with his own issues and I am doing everything I can to shelter him from my problems. I haven’t even told him about the situation I currently find myself in. He is far away from home and putting himself in danger daily. I will tell him when it’s all over and done with.
But I am deeply grateful for your help and I am touched by your kindness.
Hang in there. I don’t know how this is all going to shake out for us, but I have to believe there is life after foreclosure. Maybe when I’m on the other side of all this mess, I will write a book about it and call it, “Life After Foreclosure, The Death Of My American Dream”. Then I can pay forward those like Mr. Bedard who have provided a safe and helpful place for those of us who found comfort here.
All My Best,
Christina
Gayla,
I so clearly understand how you feel. Please know you are in my thoughts as we both try to work our way thru the coming weeks and months.
Countrywide’s unhelpful response to you to cut back was like rubbing salt in an already gaping wound. Do they really believe we haven’t already cut back and cut out everywhere we can? Do they not realize we have already sold off anything we had with any value at all? I suppose not. Just yesterday, I had to part with my beloved companion and allow a loving family to adopt my dog because I can no longer afford to buy food for him. He has been with me thru all these ups and downs the last few years. Faithful, loyal and a friend who was there for me every single day. But he deserves better than to go hungry or without vaccinations. I am totally alone now. I am a hollow shell with nothing of any real value left to lose. My last and most precious possession now belongs to someone else. What other corners can I cut? How else can I cut back? What more can I give?
Take care of yourself, Gayla. You and your family are in my thoughts as we weave our way thru the process. Be good to each other, love each other and support each other.
All My Best,
Christina
Omg, don’t pannick. You need to know your rights. When they forclose the other house and try to file a judgement on the equity you have on your current home, they can’t kick you out. First of all get a HOMESTEAD. It’s just a doc you signed get notarized then record at the county for $25…which preserve the first $75K of equity from your current home to go to you and your family. If you live in CA, it’s an automatic rule.Only then will the mtg company get whatever is left over. Please don’t let them scare you. You will not go to jail, credit bill is a civil case not criminal…PLEASE HEAR ME. THEY CAN NOT ARREST YOU, THEY CAN NOT FORECLOSE ON YOUR CURRENT HOME. ONLY YOUR CURRENT HOME MTG COMPANY COULD DO THAT IF YOU START BEING LATE. DO NOT LET THEM THREATEN YOU. YES THEY COULD PUT A JUDGEMENT ON YOUR HOME, BUT THEY PROBABLY WONT BECAUSE IT WILL COST THEM MORE TO SUE YOU THEN WHAT THEY WILL GET FROM THE HOUSE. YOU SAID IT HAS $50K EQUITY, YOU AND YOUR HUSBAND IS ENTITLE TO THE FIRST $75K, WHICH MEANS THEY GET SH%T. PLUS THEY CAN’T FORCE YOU OUT, THEY HAVE TO SIT AND WAIT UNTIL YOU DECIDE TO SELL. PLUS THE JUDGEMENT IS ONLY ACTIVE FOR 4 YEARS. IT IS THEN VACATED (DEAD) AFTER THAT, UNLESS RENEW. WHICH MOST LIKELY WILL NOT HAPPEN. PLUS WITH THE MARKET THE WAY IT IS, IT MIGHT EVEN DROP (NOT MEAN TO BE NEGATIVE). ALSO, SO MANY PEOPLE ARE JUST WALKING AWAY THAT THEY BANKS AREN’T ABLE TO DO IT. IT TAKES THEM 6-12 MOS TO FORECLOSE ON A HOME NOW. BEFORE IT WAS ONLY 3 MOS. HIGH INVENTORY….IF YOU HAVE ANY QUESTIONS…PLEASE AS ME. MY HUSBAND AND I WENT THROUGH SOME HARD TIME AND INVESTED IN A BK ATTORNEY TO SEE WHAT OUR OPTION WAS AND WHAT WAS MOST LIKELY TO HAPPEN.
I’M SORRY AFTER 4 YEARS THE JUDGEMENT WILL MEET ITS STATUE OF LIMITATION AND WILL NO LONGER EFFECT YOU, IS WHAT I MENT. PLEASE DON’T WORRY ABOUT THE HOUSE IN FL. YOU HAVE NO CREDIT CARD BILLS, YOU WILL BE OKAY. THEY BANK WILL JUST FORECLOSE AND AUCTION IT OFF. THEY WILL EAT THE LOSS, DON’T TRY GIVING THEM ANY OF YOUR EQUITY. I THINK A FORECLOSE SITS ON YOUR CREDIT REPORT SOMEWHERE BETWEEN 7-10. BUT YOU’RE OKAY. YOU CURRENTLY HAVE A HOME. LIKE I SAID MY HUSBAND AND I ARE MORE WORRIED ABOUT THE CREDIT CARD BILLS THEN OUR SECOND HOME. WE WERE BOTH LAID OFF. WE CURRENTLY LIVE IN OURS AND IS ABLE TO AFFORD IT.
It is GREAT to see that there are still human feelings and good people with hearts still out there.
It is so hard lately, We cut back in every possible way at home, no cable, no home phone, just the basics. No new cars, no shopping malls, no beauty parlors, etc….
I just sold my formal dining room and formal living room, not to fall behind on either of my mortgages. I had been working for 7 years with a firm that laid off all of its employees last June (2007) and after a grueling 8-9 month job hunt I finally became employed, \{In todays world we know that one salary won’t cut it, so luckily my husband & I had saved about 6 months worth of reserves and were able to stretch it as much as possible.\} so I have been employed now for 3 months & it feels good to bring a paycheck into the household again, but it is much less than what I was making before and it keeps getting tougher.
So when we did buy our home 3 years ago we qualified with no problem, salary wise & reserves. but no one could forsee how bad this economy was going to get. The housing market has declined so much here in Miami, FL that I can not refinance. Eventhough I had given 15% down when I bought the house, I was told that i owe more than the house is worth and now they are only doing 80% loans. oh my !
the gallon of milk is the same price as a gallon of gas these days. how do you choose?
This is getting completely out of wack and salaries don’t increase and many good people are being forced out of their homes. What solutions can the bank offer?
or do they want more losses and foreclosures?
SOLUTIONS !!!!! does anyone have any?
Got one for you Carrie – get another job and tell your husband to get another job. Put that 16-year old to work. You seem to spend an awful lot of time here. Keep that up and you won’t have that new job for very long! You are not the first person to experience tough times and you won’t be the last. Do what you have to do to survive and quit blaming every body else in the world for your bad luck. Face reality – your circumstances have changed and it’s nobody’s fault. If your lender modifies your loan, be grateful because they are not obligated to do so. If they don’t, then give the house up because now, right now you can’t afford it.
Christina, I am truly sorry about your pet but you did the right thing. Someday things may work out for you but I truly believe you are the only one that will make that happen.
OPTION ONE’s Exploding Loan Modification:
Hello all. Thank you so much for all of your informative posts thus far. This blog is a goldmine of information. I have a question…I have made it to the finish line with Option One’s home retention program. They have not reduced the principle amount, and they have essentially given me another exploding arm. They offered me 5.5% for the first year, 6% for the second year, 7% for the third year and 8% for the fourth and remaining 26 years. While these are better than what happened with my exploding arm, it seems quite ridiculous to be setting myself up for heartache in 4 years. Am I a lunatic not to accept these terms or do I have a say in the negotiations. If anyone can offer some advice, I would love to hear it. Thank you so much. -Craig in Los Angeles.
Hi Craig,
With the debacle of H&R blocks “Option one unit” I am very impressed you got this down to 5.5% for a year! Most of the people working loss mitigation at Option 1 are in India. I have spoken with a few lenders and they won’t tell you this, but they like to do short term modifications with the wait and see attitude. I would make good payments for the next 10 months and go back and negotiate again. This will prove you can make these payments and give Option One ground to extend these terms. Now that your file has been seen by Option 1 (income,job history, bills etc.) I am not completely sure they will change the terms or modify any further at this point. You may want to ask one of the moderators on loansafe.org or an attorney to see if this is a possibility.
KellyG
Dear Bryce are you always such a jerk?
I was wondering if you get kicks out of kicking people while they are down??????
I did what most responsible people do, saved enough Money to buy my home with 15% down (67,500) & we also put away enough for 8 months of reserves ….. any my middle credit score was 738. I am not blaming anyone for my bad luck as you said it was not bad luck it is what it is . life happens – but we did truly fall into a hardship…. so don’t treat me or talk to me like an irresponsible person. I have yet to pay my mortgage late, but will fall behind this month. I tried to call the bank in good faith to try to fix the situation before it gets worse… but CountryWide would rather me stop paying my house for 3 months & then try to help me with a possible modification. YES i am mad at the broker who took advantage of me – do you think it was necessary for them to charge 2 points on each loan and make 2-3 points on the YSP, slam me with a prepay w/o disclosing it and now that same bank can not refi??? I know the economy and foreclosure rates are skyrocketing, but I am only trying to do the right thing here, it is heartbreaking to know that you have saved for years & years and wanted to raise your family in a home and then these unexpected situations arose and you feel completely lost.
I am just airing what I have seen happen to a lot of people including me….
by the way BRYCE my kids ages are 8 & 4 so how do you want me to put them to work????? my husband has been with the same company for 11 years now and I am making a decent salary just not enough to catch up since we fell behind, i had been laid off and was unemployed for 9 months (I was with that company for 7 years)…
Bryce is there any other personal question you’d like to ask instead of assuming?????? — If the bank does not want to help me, fine, they are not obligated to do so you are right there, but you can not blame me for trying to do whatever it takes to survive and put a roof over my kids head and provide a decent living.
Craig C:
I agree with KellyG ask a moderator on loansafe.org for advice or ask an attorney.
Either way you need to be honest with yourself and see what is the best option for you and your family in the long run.
have you tried asking the bank to give you a fixed rate of 5.5 for the life of the loan? do you think you can keep affording that rate long term? It doesn’t hurt to ask.