In this time of banks taking homes back in foreclosure left and right, you would think that some common sense would still prevail. However, here I am telling you the story of another home that will go into foreclosure because of a banks stupidity!
You see I met someone who owned their home that they got in the divorce, the only thing was, that the home had to be put into her name and that she had to make all the payments on the loan. It was looking good for her until about August when her payments adjusted because of an adjustable rate mortgage on the loan.
Now, she called the bank and they said they sorry there was nothing they could do. You see, she heard the same story as so many others have. "You have to be late before we can talk to you and possibly help you." Ok, this person, once again, had great credit, a 720 credit score until she was late on her mortgage payment.
So, she lets it default, just so she can possibly change her adjustable rate mortgage to a fixed rate mortgage that she can afford now that she is paying for this mortgage by herself without the help of a husband.
This is where shock hit her face, as well as mine, as she told me the story. The bank told her that despite her never having a late payment on her mortgage up to this point and paying around $1,500 a month, they couldn't put her in a fix rate mortgage with payments that would be around $1,300 a month because she didn't make enough money.
WHAT? You can't lower her payment because she can't afford it, yet you expect her to continue to pay the higher amount? That is the stupidest logic I think I have ever heard. If they had just locked her in, they would have had payments on a house for the next 27 years. Instead she may have to have the house go to auction and the bank will get only about 50% of what the mortgage is worth because of the condition of the house and the depreciation in the area.
Please, banks, if you have someone that wants to keep their house and has been paying you on time, work with them! Don't be foolish and throw away thousands upon thousands of dollars because of a chart that tells you they can't pay. These families want to keep their homes and a roof over their head or they wouldn't have called you before they were late and tried to work something out with you.
You may see it as you aren't getting as much from month to month, but not getting anything at all makes even less sense than taking a little less per month on the payments.
Comments(19)