About six months ago, I posted the story of my friend, Alex, who was in danger of losing his home and car back to the bank because, as a self-employed small business owner in a slow-to-recover-from-Ike industry, he had been turned down for loan modification by both lenders.
Alex asked me to update you on his story, and says this is his last word on the subject.
Alex’s car was repossessed shortly after this story originally ran, and the mortgage company foreclosed in June. The car company sold the car at auction for $20,000 less than Alex owed on it, and the mortgage company is now marketing his former home at $100,000 less than Alex paid for it. Alex wants everyone to see how illogical the system is — when people struck by natural disaster who WANT to do the right thing and fulfill their financial obligations are met with immutable bureaucracies that refuse compromise only to make a significantly better deal, and take a bath, with the next guy. Alex would have been happy to work with both lenders at FULL VALUE if only they had agreed to restructure the debts.
Finally, Alex says he has moved on. It has been almost a year and he feels like he’s finally getting his daily life back under control — even if it is in a borrowed house and borrowed car. He’s grateful for everything he’s learned and can see the light ahead.
In March, he fell in love. That was the best gift of all.
Copyright © 2009 Alice Melott
Essays by this author can also be read by joining http://www.facebook.com/alicethewriter.
#1 by Sandy Brode on August 4, 2009 - 11:01 pm
This story is not only moving but a common one, here in Michigan. We’ve been having short sales and repo nightmares longer than the rest of the states. Stresses on good people, trying to do good has been unbearable at times. Our market in Ann Arbor is finally stabilizing after Pfizer left leaving 2000 market holes & giving $100 grand to employees they wished to move. The rest struggled with slow modifications or long REOs which haven’t helped newly qualified buyers to close, in a timely manner.
So yes I also wonder why restructure was not a solution and have been moved by this story wishing Alex to know he was never alone and glad he’s now loved 🙂