Those of you who have read Sodapop and Slobo’s blogs lately, probably know by now what my MIL has had to go through with Countrywide Mortgage in Las Vegas, NV. When she and Sodapop decided to buy a house together, they financed it in on my MIL’s credit. Slobo and I couldn’t believe the amount they approved her for. It was double what a normal 30yr qualification should be based on her income. Even with the new allowances for a higher total indebtedness. Yet, because my SIL knew the person referring Countrywide, my MIL felt safe.

Nana said the loan agent was very likeable, said it would be no problem, and yes, she closed and moved in – with an adjustable mortgage. A few years fast forward, interest rates climb, and now she realizes the type of loan she has is building up negative equity at a rate of over 900.00 a month. It’s not that the house payments can’t be made. It’s the negative equity incurring on the house that has placed them in a position of not being able to sell the house now that she needs to. She feels stupid for having fallen victim to the predatory lending agent and Countrywide. I wish she would speak more about what has happened – there are so many companies that prey on people, especially older more established debtors. They know they have great credit – steady incomes – and they STEAL! That agent walked away with a 25k commission for selling my MIL that loan. Now my MIL risks all she had worked for her entire life. She would have to come up with the money to sue – and has considered it – but doesn’t want to spend the money she needs to make her house payments for fear of making things worse with a pending lawsuit.

This is a woman, who raised two kids alone without child support, had just left a home that had been paid off – all because this predator of an agent sold her on this mortgage. Never disclosing fully what the adjustable mortgage rates would go to – how much money she would make off of the deal – and the negative amoritization she would face.

Now, she faces moving across the country to live with us. Sodapop has decided to leave the state and move to California. Nana has had her house for sale for several months and isn’t sure if her home will sell. She owes alot more on it than the highest priced recent sale in her neighborhood. Countrywide says it will work with her to sell the house for less than what is owed on it – but nothing definite on how much / if anything / she will owe on it when it does sell. Her credit is a mess. And worst of all, her self – respect and dignity is truly shattered!

There are many lenders who are above board and honest. The first two homes I purchased went very well. Having a high credit score didn’t hurt, but I also had a little knowledge about what to expect in the closing papers. What sounded suspiscious and what was being added that would be taken off if the slightest objections were raised. After all, they want that house to sell probably even more than you want to buy it. I wish that we had been there with her to discourage what happened, but many times, people believe that who they are dealing with is honest and up front and has their interest in mind. That is usually not the case – the agents are working for the lenders – not you. Albeit, there are many that are honest and upfront.

My step-brother, who lives in southern Texas, will probably be needing repair work done soon. The last we heard, he was taking a row boat from the front of his house to get into a window at the back of house. He could always look into some Texas Mortgages to remodel after all of the flooding, but then again, maybe he should think about higher ground and look into moving the family to Austin. In either case, I hope that he or anyone else that looks for a mortgage will become well informed. It’s only by being well informed that you can prevent a tragic mistake.

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