As the foreclosure crisis has surged over the last few years more homeowners have found themselves underwater in debt. With little room for financial resolution many have lost their homes to foreclosure. To make matters worse, some lenders have recently been discovered to be stubborn in their mortgage debt negotiations or even unlawfully foreclosing on people’s homes.
With fewer people able to secure loan modifications or short sales, many have learned the hard way exactly what happens when a lender pursues their own interests first.
Caught Off Guard
One man in Eau Claire, Wisconsin has been struggling for months to keep his home that he shares with his 6 year old daughter. Having suffered a brief financial hardship, the man began working to resolve his mortgage debts and get caught up. Apparently his efforts were not heeded by the lender and they pursued foreclosure anyway. The man took his case to court to plead his case and representatives from the lender failed to show up at the court hearing, he was granted a temporary stay until they could meet again the following month. Unfortunately, this is an all too common occurrence as lenders take action despite homeowner efforts.
Another local man across town has been fighting a different battle for the last three years. He found himself in foreclosure after a refinanced ARM loan spiked his payments out of reach. Even worse is that the man never took out the refinanced loan, but a former girlfriend did. Having never signed or agreed to any refinancing loan on the home, the man was unaware of the loan until the home entered foreclosure. Now fighting the proceedings stating “predatory lending” practices on behalf of the lender, the man can’t understand how the loan was approved when only one of the two original mortgage owners was listed on the application. This case is an example of how some non-reputable lending practices allow loans to slip through the cracks.