Your Voices: Military Family Faces Foreclosure

This is the second installment of Dispatches from the Displaced, in which one homeowner shares his or her story of facing foreclosure to represent the over 10,000 houses that are foreclosed each weekday. Read yesterday's story from Connie in Queen's Creek, AZ here.

Have a story on how a home foreclosure has affected you, your family or your friends? Send it to us at [e-mail], and sign up here to receive updates on the feature as it progresses.

Today's testimonial comes from a military family. Carol Ann Smith has a son serving in Iraq and a husband who served in Vietnam.

I have a daughter who is mentally ill and my husband and I are raising her two children. The cost of her treatment and the care of the children made it difficult to pay the bills. My husband taught Algebra and Geometry in the public schools and I am a second shift computer operator.

In desperate circumstances we refinanced our home with HSBC at a 12% rate, thinking that we could refinance in a year. Then, my husband had a stroke and had to take early retirement. We quit paying our mortgage and filed bankruptcy.

HSBC has offered an 8% rate, but they added $18,000 to our $180,000 mortgage, raising the loan amount to $208,000. The house would not appraise for more that $180,000.

We received this offer in a letter. The payment is still too high. I have tried to call HSBC and left at least 20 or 30 messages, but they do not return my calls (we have signed a waiver through our attorney allowing direct contact.) If they would work with us on the payment, we would be able to stay in our home. It is just frustrating that they won't return my calls.

No one placed a gun to our head and made us make this terrible loan, but we are willing to pay back every cent if they would only lower the rate to make the payment something we can afford. Otherwise, HSBC will own a home that needs quite a bit of work, in a neighborhood where several homes are already for sale.

My husband is a Vietnam veteran and my son is currently in Iraq. We are good citizens that have faced life changing events. I pray for everyone going through the anxiety and stress of losing a home. Ultimately, we are all in this together.

Today, while Smith stares down foreclosure, over 10,000 people will lose their homes. Today also marks the launch of the Home Defenders campaign run by the Association of Community Organizations for Reform Now, or ACORN. Homeowners in seven cities across the country, including New York and Los Angeles, have banded together to fight foreclosure with acts of civil disobedience. These so-called homesteaders will risk arrest by staying in their homes while banks and law enforcement inevitably attempt to throw them out.

Share a story of how the housing crisis has affected you by emailing [e-mail]. And SIGN UP HERE to receive updates when we publish new stories.

For testimonials from these homesteaders and others facing foreclosure, take a look at Brave New Foundation's new site, Fighting For Our Homes.

Find out more about Dispatches from the Displaced, HuffPost's Eyes&Ears series of reader-submitted foreclosure stories.

Comments

[harriettubman]

If you refinance at an appreciated rate that will be added to your mortgage. It's time people learned a thing or two about mortgages before getting in this boat again. And don't accept an interest rate you don't want. I'd like to refinance right now but don't want to just yet.

[javaz]

Does this family receive state aid for their mentally ill daughter and aid for her 2 children?
Does the father or fathers of the children provide child support?
Does the son in Iraq still reside at home or does he have his own home?
Instead of retiring, couldn't the Vietnam Veteran who had a stroke applied for disability since he can no longer work? Or does he collect more from his pension?

This is another poor example, that's 3 now, of people who lacked the common sense on refinancing their mortgages and all three stories thus far, are not telling the entire story.

I'm not even sure these people would qualify under President Obama's foreclosure plan.
President Obama has stated just last Tuesday that those who were irresponsible or just didn't know better would not be helped by the plan. He also said that it is time for all Americans to begin living within their means and taking responsibility.

Good luck to all who are facing foreclosure and hope that the people who do qualify for government assistance receive it and learn from it.

[Wiserone]

I agree and also Vet's do get monatary advantages in the civilian world that many others who are facing foreclosure don't receive. It's actually a mindset when having been a military dependent over the years.

[yoshi99]

What benefits to veterans facing foreclosure get? I do this for a living, and I have no idea what you're talking about. The military doesn't pay for their legal representation in the process, nor does the military (or the government, for that matter) provide any sort of housing assistance for veterans simply because they're facing foreclosure.

As an aside, I think the folks serving our country have earned the few benefits we give them (such as the GI Bill and VA loans).

[TrueIndy08]

no... NOT TRUE! Vets get perks if they use the VA loan.... $0 down, no PMI, easier standards.....

but they in NO WAY get any sort of financial assistance facing foreclosure

[Wiserone]

I'm also wondering if they took advantage of a VA loan initially, and if not, why not?

[yoshi99]

What difference would it make? All the VA loan does is get you out of paying mortgage insurance, which -- in turn -- means the downpayment may be lower (or zero). It doesn't have any impact on the foreclosure process, nor does it mean a lower monthly payment if the homeowner put down little or no downpayment (the amount that would've been the downpayment just gets rolled into the total mortgage amount).

[LuckyBlessed]

Not sure. But this is a good point. No One, I don't care if you're not considering getting an FHA, VA, or Farmers Home loan, should ever go to a bank or broker who doesn't offer FHA, VA, or Farmers Home. It smacks of laziness and lack of education on the part of the bank or broker who won't go to the trouble of offering these low interest low, no mortgage insurance loans. I wouldn't sign up a company that didn't offer FHA, I weeded out 90% of the banks and brokers in a given market.

[TrueIndy08]

I was wondering that too.. they should have used VA

[demfriend]

The people in the USofA must hear about these families who thought they could get the American dream on a salary that few realize is so low. Yeah they were parlayed into the loans like too many were without thought to th real costs and the real amount of bucks coming in. That the changes in pay happen at times monthly due to deployments and the ships going in and out of port isn't something most know about. That too many of our own soldiers wives/husband stand in line at food banks and get food stamps isn't often seen or talked about is shameful when these very same families have their spouse in the war zone too. This is a shameful horrible hard hing and should be at the very top of the "fix it list". I hope that with Michele Obama's desire to help the military families comes attention to all of these issues soon. The other side of this with so many homes available in foreclosure etc I would love to see any kind of package to help our soldiers/vets get into a house of their own. They deserve every bit of help and it would be a signal for those to elist another reason to do so.

[Luvial]

A little naive to think that Obama does know what is happening, isn't? Should we send more money to Obama's 2012 campaign?

[loria]

I can't quite figure out what you are saying since your first line makes little sense. But the snark is clear from the second.

I guess you are okay with our military struggling to make even the most basic of livings. I, however, believe the military should be able to make a living wage and shouldn't have to rely on food stamps. But, that is just me.

[pahpah25]

people 'volunteer' for the military..same as they 'volunteer' to accept mortgages etc. that they can't afford..i don'tknow what the answer is to these issues...but we MUST be more aware of what we are signing etc...surely, people know what they pay scale is in the military. but they enlist anyway...and complaining after the fact doesn't do any good...on every recruiting office wall there should be a huge sign.......when you enlist, WE own you........

[somsoc]

pah, get real

[amaycatbaker]

"Then, my husband had a stroke and had to take early retirement. We quit paying our mortgage and filed bankruptcy. "

The words that stand out screaming at me, is QUIT and Bankruptcy. The bankruptcy laws do not protect someone that CHOOSES not to pay back loans. You cannot get out of a loan payment in bankruptcy.

I understand that stuff happens to people, and they need to figure out how to economize. I also know that choosing to stop paying a bill is wrong.

Here is some simple advice:

PAY bills first!
In this order: Mortgage, electric, gas, phone

Second PAY for food

Third pay outstanding debt.

If these are all too much to afford, negotiate where you can. The banks are not loaning money out because people are choosing other stuff than paying the loans off first.

Being Military does not make you special, but it does allow banks to confiscate wages. The daughters husband if on the loan would have to pay, plus the daughters husband if he did not pay housing to the parents for his wife and child, could be held negligent.

[MitchW]

As the article points out - she and her husband are NOT active miliatry (very deceptive headline). Had this been a "military familily" they would have recieved on post housing.
What possed them to buy a 180,000 home ? Why could'nt they rent like alot of other people have to? Did they save anything to put down on the house before they bought it? So for those of you that rent take heed- these folks are going to get to keep the McMansion - YOU will pay for it through your tax- yeah real fair.

[amaycatbaker]

I want to add, and your points are great, is this:

Pay 1 dollar extra on the mortgage, and confirm with the bank that it would be applied to principle, this will take months off of the length of the loan.

[ForObamaInDallas]

I'm a renter. Trust me, I Know I'll be paying for many folks to get to stay in their mcMansions that I absolutely loathe. And yet, my hope for a house gets further away from me.

[TheArtisan]

"The bankruptcy laws do not protect someone that CHOOSES not to pay back loans. You cannot get out of a loan payment in bankruptcy."

Your statement is incorrect.

The person in the article claimed her husband had a stroke. It would be assumed that he couldn't work anymore, hence, his income may have been significantly reduced to a level that could not sustain the mortgage payment.

I feel that your pecking order of what to pay may be a little skewed, at least for a typical American.

In this country, most are not fortunate to be able to negotiate with the banks and mortgage companies. They are still going by their old practices.

In the situation discussed in this article, you take care of yourself and family first.

[amaycatbaker]

Where in the bankruptcy law does a loan get forgiven for lack of payment? And also, how is it taking care of the family by choosing to not pay for a roof over the head?

[Luvial]

Trillions are going to the moneylenders. There is no help coming for the middle class.

[gjohntheterrible]

Have the tr00ls been in here to say that these military families were irresponsible and deserve what is happening to them? The compassionate conservative strikes again.

[MadeinAmericaProud]

Being a veteran, I truly want to be compassionate with this family's situation, However, stating this family has a daughter with mental health was allowed to have a sexual encounter to bring two children that would also have mental health problems from their mother was the first extremely poor decision.

It is clear their educational level is limited. It was great they had a job that the tax payers supports such as the Department of Defense to provide a earnest living. Nevertheless, not all military personnel make poor decision such as this family did, but they are having financial problems because of other people poor decision of their home values going down just like the rest of us who did follow the rule to never live above one's means. Living off plastic money is never a good idea.

Buying items that will becomes obsolete at the same it is being place is the bag before you can get out the door of the store.

[Rachel Rodriguez]

While I agree that some of the problems of this family were their own doing, your characterizations are unfair. Many mental illnesses can present themselves later in life, possibly after this women already had children. Also, the writer claims that her husband was a teacher, something that requires a college education. I don't know about you, but I don't consider that to be a limited educational level.

Yes, they made mistakes and now they are paying for them. But let's not pass judgement where it isn't do.

[netzwerg]

Thats why I fled the USA 6 years ago to europe. Saw this BS coming.

Now Im much better off financially, healthy and socially secured.

For no money in the world I would return to the US.

[gjohntheterrible]

For no money in the world would we want you back.

[netzwerg]

Its always so depressing when i come to the US to visit my parents. Its like you enter the plane in 21st century in europe and exit the plane in some third world country a few hours later.

Sad but unfortunately true.

[harriettubman]

I'm hearing more and more Americans tired of corruption in this country speak of moving to another country for a few years. Its sad but true.

[yoshi99]

I hear it, too. And I wish they would go ahead and leave already, because they obviously aren't interested in trying to help solve problems -- they just want to sit around and complain.

[NYC123]

This American meltdown has all the "Foot Prints" of White Elitists and their White groupy cohorts! Greed, corruption, self serving spin, and more greed at every level, and in every institution that we as Americans hold sacred! Americans are being freeken screwed, by the powerful and the wealthy!

[zundra]

I agree with everything you said except the race baiting part.

[NYC123]

The American meltdown has all the "Foot Prints" of White Elitists and thwie groupies, greed, self serving, corruption, and more greed; at every level and in every institution that we as Americans hold sacred!

[Luvial]

Total corruption of America. Look how many rich criminals are not arrested for their crimes, but the prisons are filled with poor people.

[MadeinAmericaProud]

This has been going on for years.

The general rule in life, when you see other people being mistreated and say nothing, by the time they get around to mistreating you, no one is left to extend a helping hand.

In other words, what is allowed to go around, will come back around to bit one in the A$$.

United in name only, does not make it so, That is the bottom-line.

[vippy]

We bail out those sorry banks, they should have went bankrupt and their CEOs should have to find
a job. Why they would not make a deal with those mortgage holders I don't know, they would rather
repossess the home. Why? Someone in congress has to take action and put a stop to this nonsense.
Most of the people were against the bailout for banks, however, they got their money with no questions asked and then they asked for more. How does that make sense? Seems like the MAFIA is running
this country when compared to other countries in similar situations who put forward rules for their
banks and nationalize them with paycaps for CEOs in place. Makes we wonder.

[dsmom]

Countrywide won't refinance our loan because we're retired...go figure. I would think they would do whatever to help make the payments easier on us so we won't be forced with foreclosure. They just don't care.

[MitchW]

If you have an FHA or VA loan you may be qualified for a streamline finance. No closing cost - and you dont have to resumbit appraisal, income, survey etc. They will lower your rate and extend the loan to up to 30 years. At no cost to you this reduces your payment and interest (assuming the rates stay low). You cant get money out, you can only streamline the current balance. Hope that helps (go to the FHA webstie to find more info).

[John Hammink]

I know I'll get spammed all over the place for writing this, but....

This state of affairs is just unacceptable.

[Luvial]

Right on, John.

[MadeinAmericaProud]

I agree.

However, we have voted our jobs away because we believed the propaganda, we would have more time to be with our families if these manufacturing jobs were all moved overseas to china and india etc.

Well, once the jobs left, we found out the truth. But we voted the same people in again, because we believe the next lies of propaganda. By the time the American learned they had been taken again, they were living on credit cards.

This has allowed Americans to live above our means, for years. The bills have become total due, the revolving credit is no longer available.

[zundra]

I don't think you will John. Most people agree with you. We are getting effing fed up with the state of affairs.

[JBVT]

Put 'em out in da street...

Damned Americans.

Damned Veterans.

[MadeinAmericaProud]

I think you have forgotten the basic rule. When you throw a boomerang it returns to the thrower.
The boomerang you just threw, don't be surprise when it hits you.

[JoeBlough]

Are military families suppost to be better than the rest of us financial losers?

[AtTheMoon]

I recommend that we Keep up the cheerleading and flag waving for those who volunteer unless you want to bring back a draft...cuz the war machine needs bodies I don't want them taking my sons.

[amaycatbaker]

Don't worry the military is now a family job. Us Military wives are breeding the next generation of soldiers, so you can hope to stay safe with your narrow minded selfish want to not teach your children not to sacrifice for their freedom. Mine will sacrifice for yours.

[Luvial]

Military families like the rest of us are getting nothing anyways. No need to be divisive, we are all getting screwed by the moneylenders.

[MitchW]

Active duty military are qualified for free on post housing, free medical, dental etc. For those who live off post they get BAQ to pay for housing. Based on the article the wife and husband are NOT active military. their situation, as bad as it is, would have been avoided had they rented instead of buying a mcmansion (180000!).

[PhilipTaylor]

MORAL HAZARDS: Wall Street Versus Main Street

Rick Santelli of CNBC and Wall Street and the corrupt Traders of Wall Street think there is a MORAL HAZARD when helping people keep their personal homes from going into bankruptcy due to this crisis and the "Tricky" Mortgages that WS provided.

Moral Hazard of Wall Street Banksters:

1. Banks Offer "TRICK and TRAP" Mortgages to people from 2002 to 2008 that they will Fail to repay!
2. Then placing MONSTER BETS using newly invented Insurance CDS's that mortgages would FAIL!
3. Using illegal Naked Shorting to run company after company into the ground and requiring Bailouts.
4. Using 30 to 1 and up to 100 to 1 leveraging on the Oil Market to drive crude to $147 per barrel!
5. Taking excessive fees and then doling out the fees in Excessive Salaries and $10 to $100 Million Christmas Bonuses.
6. Using a Housing & Insurance Ponzi Scheme to rip-off the World
7. Bribing Ratings Agencies to assign FAKE "AAA" ratings to High Risk Derivatives.
8. Asking Paulson to Bail them out with Corporate Welfare after their Ponzi Scheme bursts!
9. Continuing to give Massive Bonuses while taking Taxpayer Money.
10. Bribing Congressmen with massive contributions to encourage deregulation!

[iowamomof2]

Numbers 2-10 would never have happened if people hadn't gone for number 1.

I bought a house in 2005, not stellar credit, saved down payment, 6% fixed 30 yr. mortgage. It is irresponsible to finance a mortgage at 9, 10, 12, 15 percent. If you go in and that is the rate you are given you should have walked out, not signed on the dotted line hoping on some future miracle to help make it better.

I had sympathy for the people that were forclosed on but these stories that are being run here are just ridiculous, poor choices.

[loria]

iowamom,
We too have a 30 year fixed rate at 6%. I live in SC and I assume you live in Iowa. Homes were available for reasonable amounts. But, in CA (and some other locations) there was no way to get a home for less than $400,000 and even then you probably wouldn't want to live in it. The price of homes had gone up so quickly that affording one with a typical loan was't possible without a huge down payment (not twenty of thirty thousand). Add to that rents of $3000 a month. That contributed to bad loans. Many were between a rock and a hard place. Rent was too high to live on and the homes were too expensive unless they got an adjustable rate which went up or will be going up.

People are using their own situation to codemn the decisions made by others without understanding that the housing situation varied greatly from region to region. What is the problem with getting people into loans they can afford? Why not allow them to refinance to a reasonable rather than loan shark rate? We need to stop the hemoraging in the housing market. How do I know that others on my street aren't close to foreclosure? Nothing will cause the value of my house to go down quicker than a string of foreclosures in my nieghborhood.