| Page 2 of 4 < > |
Suffering in Silence Over Foreclosure
TOOLBOX
   Resize
COMMENT
 Discussion Policy
 CLOSE
Comments that include profanity or personal attacks or other inappropriate comments or material will be removed from the site. Additionally, entries that are unsigned or contain "signatures" by someone other than the actual author will be removed. Finally, we will take steps to block users who violate any of our posting standards, terms of use or privacy policies or any other policies governing this site. Please review the full rules governing commentaries and discussions. You are fully responsible for the content that you post.
Who's Blogging  |
Mitchell said her monthly payment jumped by $300 a month, and she quickly fell behind. She later learned that her property taxes of more than $3,000 a year were no longer a part of her mortgage payments. In October, her rate will increase to more than 10 percent.
Mitchell recently discussed a letter she received from her lender that threatened foreclosure and the anger she feels about what she considers an "unscrupulous loan." She acknowledged that she was too trusting and did not read all the paperwork, which she regrets.
Now she is stuck.
"When you call a refinance company, they base it on your credit score," Mitchell said, adding that her credit is not good. "It's a no-win situation."
She said she doubted her neighbors were aware of her situation, which she does not discuss.
Fighting back tears, Mitchell described the stress she has endured. She said she and her son have resorted to eating noodles and peanut butter and jelly sandwiches several times a week to save money.
"I don't know the last time I got eight hours of straight sleep," she said. "I just feel robbed."
Many Subprime Loans
In Perrywood, where recent list prices ranged from $329,900 for a townhouse to $679,000 for a detached house, dozens of Mitchell's neighbors are facing similar financial woes. Several residents listed on RealtyTrac's foreclosure records would not answer their doors to a reporter or return phone calls. Most who did talk did not want their names published.
"People are suffering in silence," said state Sen. Ulysses Currie (D-Prince George's), who represents Perrywood. "They get behind in the payments, go into denial, feel like it's not happening."
Perrywood's predicament is not unique. Well-to-do developments in Las Vegas, Phoenix and Riverside County, Calif., are also feeling the brunt of the mortgage crisis, said Richard Green, a finance professor at George Washington University. Often these homeowners simply took on more debt than they could handle, he said, counting on rising home values to bail them out. When the market foundered, many were left owing more than their houses were worth.
In Perrywood and more broadly in Prince George's, Maryland officials said they think discriminatory lending practices also played a part in the rise of foreclosures.
"It's an issue that has to be looked at very carefully," said Maryland Labor Secretary Thomas E. Perez. "People ask why is this happening disproportionately in Prince George's County. It's not difficult to understand when you know it's a majority African American county."
Mobile
Email