She scrambled to renegotiate her loan and got trapped in a red-tape nightmare. The bank would not talk to her because she was not yet late on her payments.
“I ended up renting it out, my income was going down,” Ms. Formariz said. “I tried to hang on to it because I thought I was going to make up for it.”
Eventually, she stopped making payments.
“I tried to modify the loan, contacted the bank several times and each time they would take my information and say they would get back to me and they never did,” said Ms. Formariz, tears welling up. “Towards the end they said there was nothing they could do.”
She simply did not have the income to keep her home. It foreclosed about three months ago, selling recently for US$400,000. Her marriage did not survive the stress and she now lives with her young daughter in a home she rents for US$1,500 a month.
Read more in the Financial Post
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