The last story for my state representative This one happened in 2011....
Judith and Sam,
Judith and Sam are friends of mine. I was at their wedding. Their story is a little different They only had one mortgage and it was for a mobile home on a rented lot. They bought their home right after the marriage for $59 K… Things were going OK even thought they were paying over $900/ month for their mortgage (payment) and lot rental…Then Sam lost his job. He was unemployed for over a year. They did some things to try to keep body and soul together. A paper route and a home day care business. But it wasn’t enough. Plus they had 4 children. I heard though the grapevine that they were in trouble and I got involved. After 10 years of owning their home they still owed $57K on it and it was worth $30 K. Molbile homes are on rented lots are different. They are repossessed like cars but they are really homes that people live in. All the laws to protect homeowners do not seem to apply to these people. I asked 3 0r 4 lawyers for opinions.
I talked to the bank. They were most unhelpful. I tried to get them to modify the loan. I suggested that they lower the principal and put the mortgage at 8%. That would bring the payment down to place they could afford. The banker kept saying that they could afford their mortgage.. They could not… They had 4 children, the youngest a newborn. I then suggested a deed in lieu of foreclosure The banker seemed to sneer over the phone line. I set up a plan with a charitable group. They had offered help with the deposit and some rent. I suggested we needed a lawyer to give pro-bono work for a bankruptcy and that the charitable group would pay the fees. They could also help with the deposit Time passed and the phone rang. It was another banker and she offered a deed in lieu of foreclosure and gave them 2 months to move out and $300. I also had them agree not to go for the deficiency so they did not need the bankruptcy lawyer J. Despite all of my friends problems the only item they were behind on was the payments for the mobile home.
Without the negotiation my friends would have been hit with a deficiency judgment and forced to declare bankruptcy.