Foreclosures Closing in on Migrants
Posted on May 28, 2009
Filed Under Foreclosure Homes | Leave a Comment
Tough lending laws have led to foreclosures closing in on migrants. In 2007 Jorge and Marina Schiefer had sought to get a mortgage from Countrywide Financial to buy a two storey modest house on Valley Road. Loan officer Madeline Diaz had rejected their application saying that since they were immigrants from Argentina they could seek employment but not loans.
In autumn 2008 the couple once more met Diaz under different circumstances. Diaz had meanwhile started working as a mortgage counselor for a non-profit body – Westchester Residential Opportunities. The Schiefers were now in financial trouble. They had got loan from another bank but with the sharp increase in interest they had started to default. They were three months lagging behind in payments. The interest had shot up from 7.95% to 9.25%. There was the threat that every six months it would continue to jump to stop after reaching 13.95%. They now sought the help of Diaz to make payments more manageable.
The case of the Schiefers highlights how easy it was to get exotic loans during the time of the housing bubble. No down payments or income proof were required. The borrowers took the loans upon being assured by the predators that within a year or so the price of houses would jump and they would be able to refinance to a lower interest rate or make heavy profits by selling the unit. The trend of the market made many believe that this pace would continue. Nobody but few pundits read the writing on the wall that it was impossible for things to go on like this. The fall had to come.
After being turned down by Countrywide the Schiefers had knocked on Option One – a branch of H&R Block that has been lately taken over by American Home Mortgage Servicing.
The couple had come to USA in 1999 and after steadily working they were ready to purchase a house in 2006. The house they set their eyes on needed repairs but Mr. Schiefer could do it himself as he was a contractor by profession. To them it was a dream-come-true – something solid they could hand over to their three children.
A friend of their son guided them to Option One. The broker who did the steering can no longer be traced. They were given a loan that required no down payment or income verification. The monthly payments started with $3,458 but soon jumped to $3,944 per month.
With the intervention of Diaz they have managed to ink a new agreement of 27 years with a fixed interest of 7%.
Find your dream home in Government Repo ! Search by top cities!
Popularity: 3% [?]
Related Tags
Nobody landed on this page from a search engine, yet!Comments
Leave a Reply