Economic Casualty - Death of the American Dream
Once upon a time, there was a happy couple with a little boy. Dad was making lots of money and mom was supplementing the income. In addition, mom had just announced that a second child was on the way. They decided to move into a bigger house to adjust for the growing family.
That turned out to be a mistake. The family bought a house that was just barely affordable. A few weeks after the deal was signed, the company dad worked for decided to "restructure" various payment plans, with the result that dad wasn't making quite so much money anymore. In addition to this, mom had complications with the pregnancy resulting in over three months of bed rest and a few visits to the hospital. Mom's supplemental income disappeared and the bills started to accumulate.
The family decided to sell their house and took out a second mortgage to pay the bills. Unfortunately, the housing market chose that moment to come crashing down and the couple were unable to sell the house. The money from the second mortgage dwindled away.
Undeterred, the plucky family tried to negotiate with the bank (Wells Fargo). After all, they hadn't missed a payment and their credit score was still sterling. The bank said that they couldn't negotiate unless the family started missing payments. So, the family stopped paying the mortgage in order to negotiate with the bank. Months went by.
Finally, the family knew that they would not be able to keep the house. They made preparations that were needed. They purchased a trashed foreclosure and started fixing it up, moving in when it became habitable. Then they prepared to do a deed in lieu of foreclosure with the banks. However, the mortgage downturn had become a crisis at this point and the banks would not accept the deed unless all monies were paid in full. The hapless family was forced to declare Chapter 13 bankruptcy.
A couple of months after the Chapter 13 bankruptcy had been filed, the family started to receive their mortgage payments back from the bank that held the deed on their new house (Chase). This was odd, since the money was in the account and the payments were being sent electronically to the address listed on the mortgage statement. A second payment was returned. And a third. The family asked their lawyer what was happening. The lawyer sent several letters to Chase. A fourth payment was returned. Chase started to file foreclosure proceedings. A fifth payment was returned. And a SIXTH.
Finally, the family was able to determine what happened. After several transfers, Chase said that the family was a high risk investment because they declared Chapter 13 bankruptcy. They said the family had to send cashier's checks each month to a different address than was listed on the mortgage statement. A repayment plan was worked out and the family tried to settle in happily ever after.
However, it appears that the left hand of Chase doesn't know what the right hand is doing. At the end of February, Chase was claiming that the family had not paid their February mortgage, even though a cashier's check had been sent. Collection calls were made and Chase filed another motion in court.
To make a long story short, as of today Chase is claiming we owe more than we actually owe. In addition, we tried to refinance under the new Obama plan. We were told (after the obligatory several transfers) that, because we had declared Chapter 13, we had ALREADY refinanced and that Chase would not cooperate with us. Then Chase hung up on us. Yes, they hung up on a customer.
So now we are in a position where we may end up losing this home too. Because of the Chapter 13, we will not be able to secure another mortgage for at least 10 years (the amount of time the bankruptcy stays on the record). At that point in time, I will be about eight years away from the retirement age of 65.
I just don't get it. We tried negotiating with the banks and they refuse to negotiate. Chase seems to be actively trying to force us out, despite the fact that they will almost certainly lose money on their investment. It's like they have already written us off and don't care any more. Of course, this is the same firm that told Jeff that the reason he was unable to sell his house was that he was asking too little for it.
With all that we have been through, I now have a much greater understanding of why the banks are failing. I just can't bring myself to pity them any more.
That turned out to be a mistake. The family bought a house that was just barely affordable. A few weeks after the deal was signed, the company dad worked for decided to "restructure" various payment plans, with the result that dad wasn't making quite so much money anymore. In addition to this, mom had complications with the pregnancy resulting in over three months of bed rest and a few visits to the hospital. Mom's supplemental income disappeared and the bills started to accumulate.
The family decided to sell their house and took out a second mortgage to pay the bills. Unfortunately, the housing market chose that moment to come crashing down and the couple were unable to sell the house. The money from the second mortgage dwindled away.
Undeterred, the plucky family tried to negotiate with the bank (Wells Fargo). After all, they hadn't missed a payment and their credit score was still sterling. The bank said that they couldn't negotiate unless the family started missing payments. So, the family stopped paying the mortgage in order to negotiate with the bank. Months went by.
Finally, the family knew that they would not be able to keep the house. They made preparations that were needed. They purchased a trashed foreclosure and started fixing it up, moving in when it became habitable. Then they prepared to do a deed in lieu of foreclosure with the banks. However, the mortgage downturn had become a crisis at this point and the banks would not accept the deed unless all monies were paid in full. The hapless family was forced to declare Chapter 13 bankruptcy.
A couple of months after the Chapter 13 bankruptcy had been filed, the family started to receive their mortgage payments back from the bank that held the deed on their new house (Chase). This was odd, since the money was in the account and the payments were being sent electronically to the address listed on the mortgage statement. A second payment was returned. And a third. The family asked their lawyer what was happening. The lawyer sent several letters to Chase. A fourth payment was returned. Chase started to file foreclosure proceedings. A fifth payment was returned. And a SIXTH.
Finally, the family was able to determine what happened. After several transfers, Chase said that the family was a high risk investment because they declared Chapter 13 bankruptcy. They said the family had to send cashier's checks each month to a different address than was listed on the mortgage statement. A repayment plan was worked out and the family tried to settle in happily ever after.
However, it appears that the left hand of Chase doesn't know what the right hand is doing. At the end of February, Chase was claiming that the family had not paid their February mortgage, even though a cashier's check had been sent. Collection calls were made and Chase filed another motion in court.
To make a long story short, as of today Chase is claiming we owe more than we actually owe. In addition, we tried to refinance under the new Obama plan. We were told (after the obligatory several transfers) that, because we had declared Chapter 13, we had ALREADY refinanced and that Chase would not cooperate with us. Then Chase hung up on us. Yes, they hung up on a customer.
So now we are in a position where we may end up losing this home too. Because of the Chapter 13, we will not be able to secure another mortgage for at least 10 years (the amount of time the bankruptcy stays on the record). At that point in time, I will be about eight years away from the retirement age of 65.
I just don't get it. We tried negotiating with the banks and they refuse to negotiate. Chase seems to be actively trying to force us out, despite the fact that they will almost certainly lose money on their investment. It's like they have already written us off and don't care any more. Of course, this is the same firm that told Jeff that the reason he was unable to sell his house was that he was asking too little for it.
With all that we have been through, I now have a much greater understanding of why the banks are failing. I just can't bring myself to pity them any more.