MY STORY

Let me start by saying I had a feeling there was something going on financially as early as the first half of 2007 when I applied to assume the mortgage after divorcing. They turned me down. I could not get a loan even though I was making around $50,000 a year. I had a credit score in the mid 700′s. The assumption was for less than $115,000! I had some debt but also had written proof of the money I would receive from my ex when I got his name off of the mortgage. I finally went with a mortgage broker and got a loan from Wamu in late ’07 at an interest-only rate of 7.75%. And in early-to-mid ’08 I was calling them trying to get a modification on the crappy “interest only” loan I got from them. Of course, EVEN THOUGH I HAD BEEN APPROVED AND ALREADY HAD A LOAN WITH THEM, they would not approve me for a modification. For a year they kept telling me to keep my ears open, something was coming down the pipes (from the gov’t). Eventually Wamu was bought by Chase. GOOD RIDDANCE !

In the end of Sept. 2009 I finally joined the ranks of the layed off in the Metro Detroit area. I have to say (as I have said a million times!) thank goodness I had a second job. I have worked weekends in a restaurant for 9 of the 9-1/2 years I had my full-time office job. So, like millions of others, I applied for and recieved unemployment (mine was a lower amount, as I still had some income and was only under-employed). I had made the decision a year prior to stop making house payments if I lost my full time job (where I made $40,000 a year, not including overtime). There was just no feasible way to afford it without my full time income.

So started my job search. I took a new job in Jan. 2010 making a little over half of the hourly rate I previously made (approx. $23,000 a year) and still could not see how to maintain a monthly house payment of $1242. I now had to purchase “work clothes” as my prior job of 9-1/2 years was blue jeans and t-shirts. I applied for (and finally recieved) a loan modification, which had a payment that was still more than what I brought home every other week, so I continued to make no house payment. Why throw good money after bad? And, talking to others, I learned that the full amount was still due, they just added it to the end of a 40 year loan as a bubble payment. Really? At that point I would be in my 90′s!

I continued (though not aggresively) my job search and was rewarded with a better job offer in mid-May. So, I put in my almost 2 week notice, only to have the better job fall through. Now I can’t collect unemployment, as I had not yet reached a specific amount of income to be able to collect again. I continued to make no house payments.

I also applied for food stamps (bridge card as it is now called). I was told I was eligible and when I received the letter in the mail, make sure my response was timely and via fax, not snail-mail. I no longer work in an office, so I went to Kinko’s numerous times, but was never able to get a fax through. It was ALWAYS busy. I finally got it through early on a Saturday morning, one day late. So, no food stamps. Now things are getting a bit scary as I am having a difficult time making payments for everything on time.

In July of 2010 my home of 15+ years was sold at auction. I am now in the 6 month redemption period, though I will wait until an eviction notice is posted and will take it to court for a further extension before I move completely out. After paying $30,000 in interest in 2 years of house payments, I will let them support me for as long as I can. Now no need to even think about the house payment! Now I only need to think about the fact that the bank can come after me for the next 6 years for the entire amount owed!

I have learned many things through this experience, but first and foremost is it is very difficult to find all of the information needed to survive a foreclosure. Though I never hired you for your services, I have subscribed to your newsletter since Feb. 2010 and found it to be very helpful. It has sent me searching for more info on many subjects multiple times. People are so under-informed when it comes to foreclosure (with the help of our wonderful government and financial institutions, who like to keep us in the dark and feed us s***.) We really need more web sites like yours.

I have also learned how to live within my means, without loans and credit cards. It is a difficult lesson and has taken awhile, but I think I have figured it out.

I filed for Chapter 7 bankruptcy the day after my house was sold at the “Sheriff’s Sale”. I do not want to live the next 6 years wondering when Chase will come hunting for me with a $210,000 past due bill, thank you very much. My debt was not that bad, other than the mortgage. Believe it or not, I had NO DEBT besides the mortgage in June of 2008. That is correct, everything was paid off; car, credit card, there was no 2nd mortgage. How, at 53 years old, did I end up here? So, let’s just clean the slate and start over. If I ever buy another house I will certainly NOT get a mortgage. If I can’t pay cash for it, I can’t afford it. They (the banks) will never see another dime of my money. The hit my credit score will take from foreclosure AND bankruptcy? Doesn’t even matter because I won’t be applying for any credit….

I did receive a letter in the mail the other day from Chase’s lawyers, offering money for leaving my home ASAP and leaving it in broom swept condition. The money they offered would pay rent for the next 5 months, if I could move very soon. Why? I can live here and pay NO rent. Unless they want to offer at least 3 times that amount they are stuck with me! I have lived here for 15+ years! I cannot move out of here in a few weeks!

And, I must add, I am very thankful to my boss at what is now my only job. She has increased my number of days at the restaurant and at this point I have no problem buying food & gas and paying the utilities. I am still unsure how I will actually afford another place to live, but I won’t worry about that yet! The momentarily “free” housing works well! But I will continue to take one day at a time and keep the smile on my face. Life is good, regardless of the financial crisis!

Anonymous !

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