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Posts tagged with: mortgage

Holding Onto Anger

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Anger

“Holding on to anger is like grasping a hot coal with the intent of throwing it at someone else; you are the one who gets burned.” – Budda

We left off last week with what should have been the next to last post about my debt journey.  The final should have been doing the Dave Ramsey Shout that We’re Debt Free.  Yes it was going to take us longer, since I decided to work for myself, but we would have gotten there eventually.  This was a mutual decision by both the wife and I.  We both knew that if I just got another job, that my dream of becoming an entrepreneur would probably never happen.  Plus the added bonus of being at home with my family was an added perk.

Well in March 2013, we started getting phone calls from Wells Fargo.  It started with one, then escalated to around six a day.  All stating one thing, that the mortgage payment has not been paid since September 2012.

Six months!  My wife’s ex, hasn’t paid in six months!  He gave us so many excuses, that we lost track of all the lies he told us.  We didn’t have money for a lawyer and we didn’t know what to do.  We tried to get advice before and our lawyer royally screwed us over.

Back then, she told us the best thing to do was to get an assumption.  Well come to find out the day of our court trial, this assumption would get my wife’s name off the deed, but not the mortgage.  We had to throw the case out, as this wouldn’t have been a good option for us.

In October of 2013, we find out that he is moving out of the house, and he was going to try to short sale it.  If you aren’t keeping track of time, that is One year and one month of not paying the mortgage!  I know people don’t want me calling this guy names and what not, but truly how can you do this?!?  How can you do this when you have a daughter to provide for?

He moved into a house he was renting out to some woman (a woman that was supposedly buying this property from him, and his profits were going to pay on the back payments of the house.)  This house was so tiny, you literally can walk three steps in the living room, and you are out of this room.  How were five people supposed to live in this house?

Later that month, we were served with papers that the house was going into foreclosure.  There was basically nothing we could do, so we decided to let it go.  And right around Christmas, we come to find out that this was all part of this guy’s plan.  He approached us and said he has been in talks with the bank to get a loan modification.

In my opinion, we should have gave him the finger and told him you know what.  But my wife is the kinder of the two of us, she didn’t want our daughter to be living in that tiny house.  So we ended up signing papers for this modification.  He is planning to move back in at the end of this month.  There is a three month trial period starting next month.

I am so sick of all this, it makes me stress to no end.  And we are seeing all the after effects of it all.  While he owns a house, co-owns this house, has 3 vans, two cars, and a RV (all of which were bought during the time he stopped paying on the mortgage.)  I am really at a lost of what to do…


A Sobering Observation

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I found out at noon yesterday that I had to appear in person for a hearing in Brownsville, Texas at 9 am this morning.  A repeat of last week’s trip!  I flew out last night at 6:25, went to Houston, then arrived Harlingen at 9:50.  I just returned after leaving on a noon flight, again going to Houston and landing San Antonio at 6 pm.  I’m not whining really because I know how fortunate I am to have a very good job but I share that because travel in Texas is pretty unique.  Other people in my company cannot get their brain around that much flying and staying in one state.

I sat in the courtroom this morning waiting for my case to be called.  The Judge asked for any uncontested matters to be heard first so I heard an uncontested divorce prove up, some property tax judgments being taken, a friendly suit (which is when a minor receives money and the law required the Judge to approve) and then there was a matter that I had not seen before.  An attorney announced that he was seeking an approval of a structured settlement pay out for a woman who I’d put in her mid 50’s.  She was Spanish speaking only so an interpreter was used.  It seems that this woman had received a settlement for the wrongful death of her son back in 1991.  At that time a structured settlement payment was entered into and certain amounts were guaranteed for a certain period of time.  This obviously increased the value of her settlement because the then present day value of the settlement increased over time as it was invested and payments were structured.  She was asking the court to basically release $85,000 of a settlement that would have been worth $140K.  With that money she needed to pay off her $55,000 mortgage and part of her credit card debt.  That’s right…just part of it.  She was carrying another $50K in credit card debt.

The Judge was obviously moved by the situation.  He took a lot of time to explore her situation and asked to see her many, many credit card statements.  All of her credit cards were at 19% interest and above.  Then he asked her about her mortgage and she testified that the interest is 24%!  That blew all of us away and after a few more questions it became evident that hers was not a traditional mortgage (obviously!) and the Judge opted to stop inquiring as that went beyond the scope of what he was being asked to do at this time.  I’m not sure what that 24% interest rate is about–maybe a contract for sale?  It’s been years since I’ve done any property law so I have no real idea. The Judge sternly cautioned her that if she doesn’t change her spending habits, she will be right back in this mess. Even after “selling” her interest in the settlement she still faces $25K in credit card debt.  He agreed to the pay out and she left the courtroom.

Clearly I have no idea what this woman’s circumstances are but based upon what I did hear and observe I was very sad! I am also disgusted by the creditors that extended her this amount of credit!  Her spending habits and choices certainly come into play but what a tragedy to have to use money from the loss of your child to get you out of debt.  It made me think though of the many parents with their children alive and well that are doing a huge disservice to their kids by being in inexcusable consumer debt.  Just food for thought.

That was my sobering day in court today.


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