Jeanne Newton

I just left my client who I am helping in a short sale process. She purchased the run-down home 3 years ago in a run-down neighborhood. She secured a loan through a well-known lender even though she had only a small income coming in: monthly SSI of $856.00, adoption care credit of $617.00 per month and $295.00 of monthly welfare money. It was her very first home purchase and she knew nothing of the process. She did not have a realtor and did not have any inspections done on the property.

Immediately after moving in, the roof started leaking, It was cold and drafty. She had rats and foul odors from an unknown source. The gas pipe broke outside, most of the house siding flew away in a wind storm and she just financially could not fix anything. This woman told me she cooked her Thanksgiving turkey for her family in chunks so it would fit in a small electric crock pot. She did this out of desperation since she had no working oven. This is a family living in poverty and she was trying so hard to keep it together.

This woman, who I'll name Ramona (not her real name) went back to the lender six months after securing her original loan. Ramona is a sweet soul but is entirely uneducated and was again taken advantage of. She refinanced and thought she was getting a fixed rate with all taxes and insurance paid with her mortgage. She cashed out an additional $90,000. Did the lender's appraiser even drive by this home? Honestly, it's a 720 sq ft converted garage and what most of us would call a shack. No appraiser in their right mind would have loaned an additional penny on this home had they only driven by. When she left the lender, Ramona no longer had a fixed rate, 30 year mortgage. Instead, she had an adjustable rate of 16.9% with a balloon payment in 7 years and no impound account. Her mortgage is now $1600.00 per month

Long story short, Ramona replaced the windows, re -roofed the home, fixed the gas line situation, added additional siding and probably had a grand ol' time with the rest of the money, who knows. But in the end, not only was the home still a shack but she lost the home. She is now living 60 miles away in a 1 bedroom travel trailer with her adopted grand baby, a dog and 2 older sons. She was told that once her home was sold she could get help in applying for a low income apartment meanwhile, her family is suffering.

The short sale is pending the lender's approval.