Foreclosures Spark Emotional Crisis

August 14th, 2008 | Tags: Foreclosures

The real estate recession in the US was not only a matter of economic crisis when the foreclosure houses sparked emotional crises among Americans in the country. As the foreclosure mercury level climbs higher the personal toll paid by the borrowers too reach its peak. Consumers nabbed in this crisis suffer not only financial losses of foreclosure but also irreparable losses in the form of mental dilemma, frustration and embarrassment. The penalty they pay as personal and emotional costs far outweighs the losses incurred due to *. They shy away from lenders and refrain from talking out ways to resolve their problems.

An example of a dream turned nightmare was seen in the case of Tina, a citizen of Moreno Valley, California. She was a single mother of two living the ‘American Dream’. She had bought a house and thought it was the happiest time of her life when her son was diagnosed with a fatal illness. Her attendance at work fell and with that her income too was cut out. Tina could no longer afford to pay her mortgage loan. Her dreams were shattered.

Deborah Stegemann, was an expert on credit counseling and working in the real estate business for the past 35 years. She said that the borrowers were so stressed with the foreclosure problem that they were unable to avail of solutions to the problems even when there was one. Under the circumstances they lost both their houses and their health. It was the low-and moderate income people that suffered the most. It had taken almost a lifetime for them to get where they were at present and having made the most important investment in one’s family life; it was a great mental set-back for them to leave the house or to adjust elsewhere.

Larry Howell was the co-founder of the Mortgage Default Legal Team that was engaged in assisting house owners smooth through the foreclosure process. The Team composed of a group of legal, mortgage, real estate professionals fortified with years of experience, negotiated with mortgage lenders, stopped harassment and collection calls, assisted in relocation and credit repair and informed their clients about their rights. Howell confessed that the foreclosure stories were a tale of family hardships no doubt but there were many borrowers whose value of the property was significantly less than the mortgage amount. Howell’s Team helped clients in their transition to a new home as well.