Life throws hard balls sometime. I have been hit with a fast, hard ball. surrender

I got a month behind in my mortgage. To make a long story short, I applied for a loan modification at the bank's urging. I was given a temporary modification which was supposed to be for three months. Well, they kept losing forms and three months turned into a year. My payment was reduced for that year. There was every reason to think the final modification would also be a reduction. Instead, it raised my principal and my monthly payment $200 a month. I could not pay MORE. When I told the bank this, I was told I had to repay ALL of the reduced payment PLUS late charges for a year although I had paid the trial modification for a year. I am losing my home because I simply don't have that kind of money.

This has made me feel like an idiot and a total failure. I have had my home for 11 years. It is hard to believe that ONE month of a missed payment could result in a lost home, but it can. The Making Homes Affordable  plan and the loan modification programs are costing people their homes. When the banks calculate the new and final modifications, they raise the principal and, in MANY cases, raise the monthly payment. In my case, the monthly payment would go up $200 for 20 years and the principal by $6000.....all of is the result of ONE missed payment. I am not alone. I have heard from an alarming number of people who have experienced the SAME thing. This is NOT how the program was supposed to work. In my case, the bank miscalculated my income. Actually, they doubled my income on paper and it took over 3 months to get them to admit to their mistake. in the mean time, the offer had expired and they refused to recalculate based on the correct figures.

We are moving. I have leased a mobile home in the country. I don't know what to do. I feel like I failed my parents who left me the money to put as a down payment when they died. I let down my sons who will now lose the home where they grew up. I will have nothing to leave them. I let myself down because I should have seen this coming. I feel like the biggest failure on earth. 

I have decided that home ownership does not mean to me what it once did. It is not worth suicidal thoughts. It is not worth having to go to a food pantry because you can't afford to feed your family. It is not worth the overwhelming depression I feel. 

This is not a case of buying a home out of my price range. Remember, I have lived here for 11 years. I have equity.  The cost of living has gone up dramatically and I faced enormous medical bills and an ex who would not pay his court ordered 50% of unreimbursed medical bills. I was not a year behind like they talk about in the news. I started out 1 MONTH behind when the bank called and said it sounded like I was just the kind of person the loan modifications were designed to help. Yep, they helped me lose my home.surrender I surrender.

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Comments:

MakG
Nov. 8, 2010 at 10:27 AM

I'm so sorry. that's an injustice to you

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JMCSMAMA
Nov. 8, 2010 at 1:57 PM

I am rarely at a computer so I cannot see journals normally. I am sooo sorry this has happened to you although I am not surprised because the bank just did this EXACT same thing to my Aunt. She has also been working with the bank for a year and just got  the news she is losing her home!! Your stories sound so similar it just infuriates me for the two of you and your families!!  PM if you ever just need to talk. You were a wonderful help to me with my horrible North Carolina move so if you ever need anything just let me know!!! :) 

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tomat...
Nov. 8, 2010 at 3:35 PM

Thanks. A friend just sent me a news article on other people who are losing their homes due to the loan modification process. It is sad and terrifying. I am lucky that we won't end up in our car.

JMC....I am so glad you got moved. I was so worried about you.

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