Recently received a VA Liquidation assignment for a foreclosure proceeding. Being somewhat of a people person, I was talking with the wife, 5 months pregnant, while setting an inspection time. Seems she was laid off from her work a while back. Her husband was off work at the same time due to an injury which put them behind. He had served 16 years in the Navy and then was a corrections officer before his present position as a counselor for inmates. They purchased a manufactured home in 2004, just before the lenders decided they would no longer finance them which sent their values in a nosedive. They knew they owed far more than the home was worth but wanted to do the right thing and pay off their obligation. They had been trying to make arrangements to get caught up on their mortgage but the lender was relentlessly pursuing foreclosure. They had made several payments the lender cashed but never credited to their loan. They found a community organization which sent in several thousand dollars on their behalf only to have the lender return it. The lender had just given them a small window of time (less than a week) to withdraw $12,000+ (some back payments but mostly penalties, interest, fees, and their legal expenses) out of his 401k under hardship provision to keep the home out of foreclosure. At this point, they were exhausted by the 8 month process and ready to give up. If the owner is receptive, I often offer advice which may be of assistance - which I did. Sometimes, the owner does nothing with it and I can at least feel that it was their choice to lose their home. In this case I gave them some direction they could try if they so desired. This was a week ago.
Yesterday, the Vet called me on my cell phone while I was on the road. He had made the call I suggested and sent them the requested documentation of what had so far transpired. He and his wife were on Cloud 9 as they just had received a call that the loan was not just being taken out of foreclosure with repayment arrangements, but would be drastically modified. The lender was backstepping quickly as they had been caught in several lies (he had and sent cancelled checks to the office). The office assured him that all was taken care of and the modification was being overseen by their office with everything between the Vet and the lender monitored until it was complete. They asked that he and his wife concetrate on impotant issues such as having and raising a baby and living their life again. And there was no need to tap into his 401k which I suggested he contact some professional advisors before doing in fear the lender would take that also and still foreclose on a technicality. The down side, now he has to go clean the yard after the long winter and cut the grass.
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