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"Just as the housing market is recovering, a growing group of homeowners — widows over the age of 50 whose husbands alone were holders of the mortgage — are losing their homes to foreclosure because of a paperwork flaw that keeps them from obtaining loan modifications."
Sounds like there was no attempt at estate planning, despite the advanced age and her husband's protracted illness. That eldercare attorney sure would have come in handy a year or two ago.
Now she expects a hand out because she is unable to keep the mortgage current? And she's miffed because of the paperwork and chooses to blame the system instead of taking responsibility for herself?
Reading between the lines, it sounds like there is no equity in this home, else she could sell it, payoff the mortgage and take what's left and move on. Instead, she prefers to remain and have the bank/government eat the loss.
Most 70 year olds do not have mortgage balances, unless they previously sucked the equity our of their homes to live beyond their means.
How was she unable to keep the mortgage current? Her husband had a 'trial loan modification' and when he died she sent a check for the correct amount and her check was returned. Looks to me like she kept up her end of the agreement.
What I don't understand -- is it true that only the person on the mortgage can pay the monthly payment?
It would seem that you could in the meantime keep paying so the payments don't fall behind and then get everything straightened out with the will and probate.
I find it difficult to believe they wouldn't accept payments -- as long as her checks were good.
If you do it right -- by the time you're 70, you would own the home outright - and the only terrible issue would be the property taxes that allow the government to confiscate your property from you.
I rented a room from a couple who refinanced to pay huge medical bills - they slept on recliners in the living room and rented out all the bedrooms in order to pay the subprime mortgage. The husband eventually died (of the same lengthy illness that produced the medical bills), and with his income gone, she eventually lost the house to foreclosure.
Some of these people may be in similar positions where medical bills led to refinancing and loss of equity.
What I don't understand -- is it true that only the person on the mortgage can pay the monthly payment?
It would seem that you could in the meantime keep paying so the payments don't fall behind and then get everything straightened out with the will and probate.
I find it difficult to believe they wouldn't accept payments -- as long as her checks were good.
Well obviously that is the case or these widows wouldn't be having all these problems.
For pete's sake, these widows aren't asking for handouts of any kind. If anything they are asking to be allowed to pay for the mortgage, or for a loan modification. Did you actually read the article? In many cases the bank is refusing to take their checks because their mortgage is in their husband's name. Not everyone can afford an attorney for estate planning.
Well obviously that is the case or these widows wouldn't be having all these problems.
They were behind thousands of dollars. She applied for a loan modification which would reduce her payment. The taxpayers pay for that. They denied the loan modification because she's not on the note.
All she has to do is get current on the note. Refinance into her own name. And then apply for the modification.
How was she unable to keep the mortgage current? Her husband had a 'trial loan modification' and when he died she sent a check for the correct amount and her check was returned. Looks to me like she kept up her end of the agreement.
It does not appear they had any skin in the game.
There is no equity in the home.
They were already in financial doo-doo when the husband applied for and was granted a trial loan mod. She was not a part of the agreement, thus she had no end to uphold.
We DK why her name was not on the mortgage. Was it an oversight or perhaps her credit score sucked. Maybe the Mr intended for the house to be sold upon her death and the profit to be distributed to his children.
It's a 4 br home which means 3/4 bedrooms could be rented out, likely to nice retired folk on Social Security. This would also allow utilities to be shared.
Everything in a house eventually wears out and needs to be replaced. What was her plan when the roof, furnace or AC blew?
A cheaper mobile home. $132K or $140K is kind of expensive for a mobile home. You can get them for less than $5000.
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