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Feel sorry for these people?
- Thread starter Capricious
- Start date
scooterbug44
SoWal Expert
These would be the people I'd feel sorry for - a family of 4 whose income was drastically reduced when (I'm assuming) the sole breadwinner had to take unpaid sick leave and they then had difficulty making payments on their $119k primary home.
Liked the moral of the story - be persistant and don't wait until you're in foreclosure and there ARE options available.
Liked the moral of the story - be persistant and don't wait until you're in foreclosure and there ARE options available.
goin' coastal
Beach Lover
Nice to see this family could keep their home. It is a primary home. The article states he had health problems. Things happen to folks, illness, death, divorce.
Capricious
Beach Fanatic
Well, I don't feel sorry for 'em.
Big surprise there, huh?
"Previous brushes with payment problems, including a bankruptcy, had left her and Michael with less than perfect credit..."
They have already demonstrated problems with managing their(?) money
"..bought their house for $119,000 in April, 2006..."
"...Their first loan was a $97,000 adjustable rate mortgage (ARM) with interest of 8.75 percent, which is fairly expensive. The second mortgage, for $24,290, was a home equity loan at 12.875 percent...."
They borrowed $121,290.00 to buy a $119,000.00 house, so
they financed 100% of the house and apparently the closing
costs as well. Think they learned anything from the previous
credit problems and bankruptcy? Did they learn anything about
interest expense?
Sure, hubby had "health issues" but is back at work.
Where was the emergency savings? And what was the
whole deal with the 401K being unavailable?? I am not
seeing the whole story here. Something is missing.
"Countrywide converted the Stutzmans' ARM into a fixed rate mortgage at 8.75 percent. The second mortgage was entirely forgiven with the debt wiped out."
I don't feel sorry for anyone who has just been given $24,290.00
These people scammed the system and won.
They walked away from a debt of $24,290.00 (and maybe some
accrued interest) in additon to whatever debt they walked away
from in their preceding bankruptcy.
Not to mention the interest that they agreed to pay and then
reneged on.
No sympatchy here, for them or their lenders.
They deserve each other
Big surprise there, huh?
"Previous brushes with payment problems, including a bankruptcy, had left her and Michael with less than perfect credit..."
They have already demonstrated problems with managing their(?) money
"..bought their house for $119,000 in April, 2006..."
"...Their first loan was a $97,000 adjustable rate mortgage (ARM) with interest of 8.75 percent, which is fairly expensive. The second mortgage, for $24,290, was a home equity loan at 12.875 percent...."
They borrowed $121,290.00 to buy a $119,000.00 house, so
they financed 100% of the house and apparently the closing
costs as well. Think they learned anything from the previous
credit problems and bankruptcy? Did they learn anything about
interest expense?
Sure, hubby had "health issues" but is back at work.
Where was the emergency savings? And what was the
whole deal with the 401K being unavailable?? I am not
seeing the whole story here. Something is missing.
"Countrywide converted the Stutzmans' ARM into a fixed rate mortgage at 8.75 percent. The second mortgage was entirely forgiven with the debt wiped out."
I don't feel sorry for anyone who has just been given $24,290.00
These people scammed the system and won.
They walked away from a debt of $24,290.00 (and maybe some
accrued interest) in additon to whatever debt they walked away
from in their preceding bankruptcy.
Not to mention the interest that they agreed to pay and then
reneged on.
No sympatchy here, for them or their lenders.
They deserve each other
Last edited:
Babyblue
Beach Fanatic
The lender feels sorry for them.
Capricious
Beach Fanatic
scooterbug44
SoWal Expert
I think the lender's shareholders are happier w/ them forgiving a $24k debt in the interests of getting paid the balance instead of a $50k+ foreclosure.
Capricious
Beach Fanatic
Considering the stock price, the shareholders are not happy
about anything.
And something tells me that the happy homeowners may yet
screw-up this new arrangement.
So Countrywide may need to write-off some more money on this
deal.
joehomes4me
Beach Comber
You stated these people .." ... scammed the system" .... One could look at a different way, they outsmarted and out negotiated the lender. The lender loaned money to borrower X, having some doubt they could pay this property off, however lending them 100% since if they failed on the repayment, they would have collect interest, LARGE closing and processing fees, and monies they collected when RESELLING this loan to WallStreet. Now the people who clearly had little savings, poor payment history, et al, have come to the lender in a better negotiating position, and said ... "hey, we can not pay on this loan. You can have the house (which may be worth less than the 1st mortgage and surely less than the price they paid and financed), unless you lower what we owe. If you do not we will not pay you a dime, we have no money to ever pay you, and will live off cash for the next 2 yrs, while we sue you, the mortgage officer who may have stated an income that was a best case scenario." Perhaps the lender is having to eat crow now. Only lend money to people who can pay off a note. If lenders with all of their lobbyist can not protect themselves and must go out of business, so be it.
Good job to this couple for playing poker with a Multi-Bill. $$ company and winning.
Good job to this couple for playing poker with a Multi-Bill. $$ company and winning.