Foreclosure Hits Anamosa Family

Slapped hard by foreclosure the Johnston family in Anamosa is fighting back tooth and nail with all they have got. They are selling everything to solve their financial problems. After missing few mortgage dues the lender began to sue them for foreclosure. Today their monthly dues are double that to what it was yesterday. Erika Johnston said that no matter how hard and how long they all worked somehow the money was not sufficient to meet the enhanced dues.

Then they took a unique step. They decided to auction their personal belongings hoping to pay their bills and avoid foreclosure. Their logic was simple – if they clung onto their goods there would be no place to keep them. Perhaps these could be dumped in a storage but every month rent would have to be paid for it. Some of the goods were ordinary like old vhs tapes; others had sentimental value. Erika was in tears over her mother’s china. Twenty-one years of life and living all were laid out on a table. Doug Johnston shuddered at the idea of parting with his tools. Tool collecting had been a hobby with him. Their two daughters had to sacrifice their knick-knacks also. Each one sacrificed something only to strengthen the bonds between them. The feeling is that at least they have each other. It is a new beginning for them – another chapter in life with lessons learnt from the past. The auction did not fetch them anything more than about $1,000. Now they are looking around for a buyer to take their house so that can shift to more affordable quarters.

The problem is the buyer – that is the root of the foreclosure crisis today. The sub-prime predatory lending led to gullible borrowers taking loans which they could not run after the interest rates began to double and sometimes treble. The lenders started foreclosure proceedings to realize the loan amount and the people lost their houses. If the real estate market had been normal then the houses could have been sold and even after paying of dues some equity would have remained to allow the sufferers to make a new beginning. But after the escalation of the housing sector this is the time of deflation. With foreclosures ruling the roost mortgage strings are tightened. So there are few buyers. Meanwhile more and more foreclosed house pile on the shop shelves.

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