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Countrywide issue on nightline. Man was put into Sub-Prime Loan when he did not even need a Sub Prime loan. Not to mention loan officer place his income at higher than what he made. He was retired! The attorney is negotition with the lender.
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ABC Nightline - 'Where Do You Go From Here?'
Retired Postal Worker Could Lose the Home That 'Means Everything' Video Link.
http://abcnews.go.com/Nightline/story?id=3892797&page=1
Even with ABC contacting Countrywide they still are not removing the fees and charges.
http://abcnews.go.com/Nightline/story?id=3892797&page=1
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'Where Do You Go From Here?'
Retired Postal Worker Could Lose the Home That 'Means Everything'
Seventy-nine-year-old Edward Jordan could lose his Brooklyn, N.Y., home of 30 years to foreclosure. (ABC News)From Nightline By VICKI MABREY and EILEEN MURPHY
Nov. 20, 2007
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Share Edward Jordan should be sitting on a goldmine. Thirty years ago, when others saw poverty and crime in the Bedford Stuyvesant section of Brooklyn, N.Y., he saw opportunity. He bought a four-story brownstone at auction for $30,000; since then, he says, property rates have gone "through the roof."
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Mortgage MessJordan should be set for life, with his investment now appraised at $750,000. Instead, he's holding a financial time bomb that threatens his golden years and his only economic asset.
"It means everything; it's a lifetime invested here," Jordan said. "And of course, if I go down, it's a nightmare. Where do you go from here? I'm a 79-year-old man."
Earlier this year, Jordan refinanced his mortgage, looking to pay off some credit card debt. With excellent credit, he thought he might improve on his fixed rate loan. A broker offered him a subprime mortgage with a very low starter rate — and you know what they say about things that sound too good to be true.
"Things I was told wasn't true," Jordan said. "I was told it would be 1 percent for five years, and it ballooned after about six weeks. It went to 8.75 percent, so that 1 percent was just, it was too good to be true, and it wasn't true, and I was caught, and it was too late."
It's known as a teaser rate. Jordan calls it a swindle. In the collapsing credit market, Jordan's mortgage misstep is a textbook case of what's gone wrong.
'Fast Track to Foreclosure'
That 1 percent teaser rate lasted only 45 days. Before Jordan even made his first payment, the rate had skyrocketed to 8.75 percent. And the loan came with monthly payment options, but the only payment he could afford didn't even cover the interest, so his principal balance increased every month.
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Special Section: Realty CheckJordan's lawyer, Meghan Faux, said even though she's been looking at loans for years, it took her a full day to figure out Jordan's mortgage.
"It keeps growing. Within the matter of a couple of months, it increased several thousand dollars," Faux said. "When his principal reaches 110 percent of his original principal balance, he no longer has the option to make the minimum payments, and his payments will increase to well over $3,000 a month, which exceeds his whole household income. He is on the fast track to foreclosure."
'Where Do You Go From Here?'
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WHAT OTHERS ARE SAYING 44 Comments
HEY, AMERICA - Live within your means!!! I...
seven_pillars Nov-23
MickfromMD- Sounds like you used your brai...
Caocao8888 Nov-23
This man got his self in trouble by refina...
curtisbjr2006 Nov-23
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FYI for ALL Veterans to know.
I. Mortgage Foreclosures.
The Act protects service members against foreclosures of mortgages, as long as the following facts are established:
1). The relief is sought on an obligation secured by a mortgage, trust deed, or other security in the nature of a mortgage on either real or personal property;
2). The obligation originated prior to entry on active duty;
3). The property was owned by the service member or family member prior to entry on active duty;
4). The property is still owned by the service member or family member at the time relief is sought;
5). The ability to meet the financial obligation is materially affected by the service member's active duty obligation.
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