Mortgage Crisis

Topical Tuesday

Image credit and accompanying article can be found here.

As a struggling homeowner, staring foreclosure in the eye, I'm appalled that we don't see more media coverage regarding the mortgage crisis.  Doesn't anyone find it odd that with so many people struggling to deal with unaffordable mortgages, etc. there is so little news about this problem?  When I went on line to do some background research, I hoped to find some statistics and some good solid facts.   It wasn't easy.  There are so many articles full of political posturing that one wonders what happens to the facts.

More than half the people I know have been directly affected by this crisis.  At first, I was very ashamed to admit that we were struggling and losing the battle.  As my frustration grew and talking about it became a way to relieve some of the stress and worry, I discovered how common a problem it is.

We tried working with our lender.  After months of dealing with them, we were worse off then when we started.  The level of incompetence found in bank customer service personnel seems to know no bounds.  It became very obvious that the bank wasn't on the same page we were.  Logic was of no use and honesty. . . representatives of the bank lied to us on numerous occasions in an attempt to collect whatever money they could.    When it became obvious that we had to look out for our own survival and it was either pay the mortgage or the water bill, light bill, gas bill . . . etc. we stopped paying the mortgage.  The bank had kept upping the ante.  We had to fold.  They held all the cards.

At first I thought we were one of the few.    When the bank modified the loan, our payments increased.  They told us that this was to help us.  Hadn't they forgiven a couple of months of late charges?   This makes no sense when you're already struggling.  Then, they took it upon themselves to protect their investment and pay our property taxes.  We always paid these taxes with our tax return.  They set up an escrow account and increased our payments another $200 plus a month.

I wrote to my senators, representatives and the Federal Government Dept. that oversees Housing.  I called the county to find out why they allowed the bank to pay our taxes.  The local county treasurer actually called me back and took time to explain to me what really happened.  The bank never could or would.  I heard from one of my state senators.  It was a general form letter.  At least it was that much.  (Thanks, Maria Cantwell!)   No one else bothered to respond.  I was a shutter banging in the wind.  Soon, I'll have no home to bang against.

 

In a last ditch effort to save our house and avoid life in a cardboard box under a bridge, we've turned to NACA. (The acronym is pronounced Knack-A.)  They are a HUD-approved entity that works as an intermediary between the homeowner and their bank to work toward an affordable mortgage. 

 

I've got to be honest.  It seems too good to be true especially after trying to work with the bank and appealing to politicians with deaf ears.  So far, we've attended a NACA workshop, filled out forms on their site and had two phone conversations.  We have not paid them a dime and will not.  There are parts about their approach that echo a sense of mission.  The look of the web site gives me a bit of concern.  It doesn't look "non-profitee" enough.  That being said, I have no reason to suspect less than honorable motives based on my interactions so far.  They are paid by the government and they seem to actually be helping homeowners.  The man behind NACA, Bruce Marks, isn't very popular with the banking industry and is a bit of a confrontive showman.  As such, he receives some bad press which I've read.  So far, I still think he's one of the "good guys."  NACA is our last shot and I'm taking it. 

 

Struggling homeowners can feel pretty isolated.  They feel shame of failing to make ends meet.  They feel the shame of not providing for their families.  They feel the embarrassment of being in a position of needing help.  All this just gets in the way.  We don't need to carry unnecessary shame.  There is strength in numbers.  Individually, we are powerless but collectively. . .  We all need to make our voices heard.  We are not alone.