Tag Archives: foreclosure

And so I sat, as I listened to a close friend of mine talking about the financial rut she and her family were in.  She and her husband have stable jobs.  They have 3 children under the age of 8.  Their home is modest.  Their cars, basic.  She spoke of little overhead.  So why are they losing their home?

2 years ago, her husband lost his job.  The company he worked for shut down.  2 years ago, she was working at the same company she is currently with.  Today, she makes a little more.  Her husband could not find work for almost 1 year after losing his job.  When he finally got a new job, the money he made was considerably less.  Fortunately, because they did not have much overhead, their current salaries just cover their monthly bills, including the necessities.  Unfortunately, the money they currently make does not cover the portion they fell behind on.  During his job loss, their credit suffered, thus causing them to be unable to qualify for a loan.  Their bills fell behind.  Their insurance went up since they had to transfer to hers.

This is a typical situation.  He never stopped looking for work while out of work.  She kept her job.  He finally got a new job and is working steadily.  They don’t qualify for a government loan, grant or anything of the like.  Conventional methods won’t work for them because their credit is awful.  This is a couple that should be helped, but instead, will lose their home to foreclosure in the next few months.  More and more couples I hear of in financial trouble, have had similar experiences.  I realize the government is trying to help the crisis where the value of homes have gone down considerably, but what are they doing for those that would normally be able to pay their bills, but need an extra boost to help them stay on their feet?  The answer, nothing.