After Foreclosure Strikes, Life Can Begin Anew

Many people have been losing their homes to foreclosure for various reasons. Banks wrongfully foreclose on homeowners and many can’t afford to pay their mortgage payments due to the failing economy. Recently, there was a case where poor homeowners were receiving aid from lending institutions through the granting of equity loans and modified mortgages.

Unfortunately, many people did not understand the terms of the deal they agreed to. A few major banks wrongfully foreclosed on the homeowners by not accurately processing their papers. Many homeowners also weren’t made aware of programs through which they could receive compensation for the wrongs done to them.

Even if you go through foreclosure, however, you can still live life and even find another house again. A couple in Palmdale, California named Susan and Dave Edwards gave their property over to the bank and they stopped paying their mortgage; this was about three years ago.

It was very hard for the couple to walk away from their home and they both reported feeling embarrassed. Unfortunately, their house’s value had dropped from $340,000 to $180,000.

After things happened, their credit score suffered and they had to rent out an apartment. Both of them were unsure if they ever wanted to purchase another home or even if they could.

Dave, who was in the army, was sent to Korea during the Vietnam War and he left his wife Susan back in California. While he was gone, Susan found out about a program called the Veterans Administration home loan program. Although she wasn’t entirely sure it would work, there was some home for them once again.

When he came back from Korea, Susan and her husband applied for the program and, thankfully, were approved for a loan. The house they own today is $163,000 less than their old one and in the same area. The interest rate on their mortgage loan is about 3.25% and each month they pay $1,500.