Update on January 19, 2007: This page has been created as the home base for this fundraiser.
Some of you may recall when I posted last month about an elderly pro bono client who is about to lose her house. Well, behind the scenes I’ve been working to see if I can get her mortgage refinanced or modified to lower the payment. Turns out that since she owes more than the house is worth, the bank won’t refinance the loan. ALSO, some crackpot who did help her refinance in 2000 had her sign a 15-year mortgage with a BALLOON payment in the last month. Which means in 2015 she’ll have to make a lump sum payment on the mortgage over $30K. It’s insane. All I can think is whoever talked her into that figured she’d be dead by then and wouldn’t have to deal with it (she’s currently 85 years old and in ill health). But even if I got her loan modified to lower the payments, she could still lose the house because of the loan delinquency.
I got confirmation that the amount she needs to bring her mortgage currently and NOT go to foreclosure is $2,800. It seems like such a small amount to me over which to lose a house, but yet I just don’t think I can write a check for that amount to help her out. But that $2,800 is so huge to a woman living on a pension who can’t even afford her $500/mo mortgage payment. Her family is a waste of space and there’s no way she’ll be able to come up with that money.
So where do I go? I thought about going to ModestNeeds.org on her behalf, but the most they’ll give is $1,000 and it would go directly to the creditor. That sounds great, right? But no – the creditor needs the money paid ALL AT ONCE, so they’d only take the $1,000 if it’s part of the entire $2,800 being paid at one time. So I can’t contact Modest Needs because timing differences make it all but impossible.
There’s a charity group in Charlotte called Good Fellows Club, but Mr. BIL told me that the last time he dealt with them for a client he spent a lot of time on their paperwork and then didn’t even get the money for his client from the group!!
I’ve contacted a ministry person at the church we’ve been attending to see if this is something that they would consider helping with, but I can’t help but think they’ll assume my email is a scam of some sort (although I did volunteer to meet with them and show proof of the need).
My blog isn’t famous enough to set up a paypal fund for her – I don’t get enough visitors and again – there’s the whole trust issue about whether I’m telling the truth or not (trust me – I am). I just feel so bad that this 85 year old woman with a heart of gold is going to lose her house in one month’s time. I’d love to be able to send off a check to the creditor without her knowing where the money came from so that she doesn’t feel shame over her inability to pay. I’d love to be able to call her and say, “The debt has been wiped clean – you can keep your home.”
Any other ideas?
Update at 4:44 p.m.: I will ask anyone out there who has a blog that reads this, please post a link to this post at your own site so that the word gets out that I’m trying to do this for Miz L. The more people that know, the more likely that I’ll be able to come up with the donations to help this woman keep her house.
I also ask that if you ARE interested in donating, please email me at cootiehog at gmail dot com with your email address so that I can send you a link to the donation page when I get it set up.
Jaynee — I would be willing to contribute some cash to help this
poor woman out. I know you are telling the truth.
Hear me — trust Jaynee!!
Maybe, if others are willing to contribute, you
can come up with the difference from what ModestNeeds is willing
to contribute.
Let me know. You can email me at work.
I would be willing to help out too Jane.
Thanks, Lila and Tara – if I get enough people commenting saying they’d like to help,
maybe I’ll go ahead and set up a paypal link to start a fund for her, with me
matching 50 cents for every dollar donated. This way, if I can get $1800 in
donations I can then appeal to Modest Needs for the rest.
I appreciate your willingness to chip in to a possible fund!
count me in and i’ll see if our church can do anything or has any ideas.
Thanks, amy! Let me know what your church says…
Once you get her out of threat of foreclosure,
maybe you could look into a reverse mortgage-
there will be no house to leave to any heirs
but it seems like they are not helping her
now.
mimi – unfortunately, a reverse mortgage won’t work in this case since she owes more than the house is worth. The house is very old, very dilapidated and the LAND is worth more without the house. She has no equity in the house for the same reason, and that’s why the bank won’t modify her loan. The collection agency I’ve been dealing with did say that once her mortgage is paid up and current again she could consider refinancing to try and get a 30 year mortgage, but he doubts it’ll get approved given her low income and the current assessed value of the house. She’s basically in a no-win situation in the long run, but if I can help her now, at this time, and get her to a place where she won’t lose her house in February, then I’ll feel like I’ve gotten something accomplished and that this woman will have peace.
Jaynee,
We could probably pitch in some as well.
-Beth
Yes, I want to help with a donation.
Barb
I would like to help, Jaynee. I do wonder though if the bankruptcy laws in NC allow the debtor to keep their home. Some states are very generous in this way. Since she has no equity, she might also be better off letting th ebank take back the house and then renting an apartment. I know there’s sentimental value and all that but it’s not a bad economic outcome better than losing equity in your home because you can’t come up with a few payments). I worry about her ongoing ability to pay after the $2,800 is paid. Just some thoughts. What you are doing for her is very commendable.and I’d like to participate. Wh
Sadly, Gwynne, the bank has already told me that if they buy back the house then she’s out. And rents in Charlote will NOT be in her budget. Right now she’s in a semi-safe area but if she rents an apartment in her price range (which is very limited) then she’ll be in one of the worst neighborhoods in Charlotte.
So keeping the house is her best option and not just for sentimentality’s sake.