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

[zitlight73]

Support the troops, my ass.

[HWBII]

The Bush Administration was populated by chicken hawks and they could barely hide their disdain for anyone who had to actually serve in the forces. Support the troops, my ass. They ignored the wounded, denied benefits to the families and made it impossible for the troops to lead the middle-class life they deserved. Sad.

[zitlight73]

But damn they made good props when he gave speeches while wearing a codpiece, then he'd go back to the White House and try to come up with schemes to cut their combat pay, separation pay and medical benefits.

[SammyD]

Your story doesn't make sense. Both of you were employed but you didn't have medical insurance to cover your daughter's medical bills? No one has paid 12% interest on a mortgage since the 1980s. If your husband was in Vietnam, he would have retired from teaching by now unless he waited many years after Vietnam to begin teaching. How long have you owned this home? It sounds as if your best solution is to go into foreclosure and buy a new home in a couple of years. You can't have an equity left and bankruptcy should relieve the stress of your other financial obligations.

[DavidMcK]

Lady, stop whining and waiting on everyone to help you. Go and rent a house and just walk away. Unfortunately, because of our upside down laws and lack of intelligence in those that make them, the people who are walking are the ones who are going to come out on top.

[breakingpoint]

Yes, what the US needs is more Americans who hate Americans and more thieves, just like Wall Street

[HWBII]

If someone is unable to afford health care insurance and gets sick, is it their fault that they go bankrupt? Universal health care is a universal right.

[DontJustFollow]

right there between death and taxes right?

[Merewen]

Ahhh gotta love HSBC. I deal with them on a daily basis and I will let you know that this type of incident is VERY common. Everyday I'm sick to my stomach.

[conniecabe]

HSBC is my mortgage holder. Yes, my story was featured yesterday and it's odd that we have the same lender. I feel your pain. They won't talk to you until you're 106 days behind....at which point it's nearly impossible to catch back up. They're not interested in working out their crappy loans. What I don't understand, and trust me real estate is not my thing, is do the banks get to write off foreclosures? Why isn't it cheaper just to work out a settlement with the home owner?

[ladyv]

Would re-doing the mortgage for a lower interest rate and/or extending it out another decade or something get the payment down enough? The fees shouldn't be allowed. It doesn't cost the company $20k to press a few buttons and hit "print." No title search, no other entities even have to be involved, if the re-fi is still with them. You'd think the bank would be happy about extending the loan, since then they'd get more $$$ total.

[Merewen]

That would be too much like right! I had a friend that put that suggestion to the mortgage company they told her to send in $2,500 and they'll modify it. She scraped it together and it sent it in. Guess what.... they didn't modify the mortgage. In Fact she got a new statement saying her next months payment was now $200 higher. And this was thru an HSBC subsidiary.

[BartLA]

typical and disgusting.

[BartLA]

Your comment makes too much sense. Which is why things are now beyond they beyond.

[HWBII]

So right.

[breakingpoint]

We only bailout billionaire bankers, sorry, move along, next!

[Zyzzygowski]

When did you refinance at 12%? Mortgage interests rates have not been above 10% for close to 20 years. You suggested that you are educated people, how did you allow this to happen?

At least you admit that you did something terribly wrong.

[chinacatsunflower]

probably a "sub-prime" rate. they were pretty high a few years back.

[Merewen]

Does it really make sense to charge people with not so great credit a high interest rate? I'm not slow, but I really don't understand it.

[RJII]

don't be naive. the bank knew they were desperate.

[Intelligentia]

Solution: If you cannot afford a house, live in an apartment. If you can afford a house, buy one that is within your means. Don't buy a $180,000 house if you can only afford a $50,000 trailer. That's just discipline and common sense. People want to run before they learn to walk. Those who do this will not succeed. There are people who live in refugee camps in a country where there is no welfare. at least, in this country, people do get free rides. So, deal with it. I don't mind paying the taxes to help out but save me your sob stories. it could be worse! I know people who have it worse than any story you can tell on this site.

[CitizenKane16]

Intelligentia seems like an oxymoron. What didn't you get about her husband having a stroke and no longer being able to work? They were paying their bills but life happens, every day. Just pray that you are not one that gets blindsided by it. Someone else on this thread had it right...there but for the grace of God go I.

[wearyvoter]

The 18 grand is probably a 10 percent downpayment on the refinancing deal. Regardless, it stinks.

[TheHandyman]

Acorn? ACORN? Michelle Bachman said that you guys were getting $185 billion from the new stimulus bill and that you were under Federal Indictment for defrauding people! Why don't you pay off these people's loan? She's a member of our government and would never lie to us. So why are you telling us these made up stories trying to get us to sympathize with people instead of the banks? We should be concerned about the People who own and run these banks! They are people just like you and me if only we were a lot richer. These banks deserve a fair return on their investment even if they already have received the money for the loan by selling the loan to some hedge fund or Saudi Prince. I see nothing wrong with not only selling the property twice but also getting it back so they can sell it again. That is what makes Amerika great!

And so what if one is a Viet Nam vet and his son is fighting in Iraq? This just means that not only are these people gullible about buying a house they obviously can't afford, they are also gullible about buying which wars to fight in! So they obviously deserve whatever unfair thing that happens to them. If they don't like it, maybe they should run for Congress or move to Antigua.

[coastalcarla]

Your snark is showing.

[BPCentrisAmerican]

Michelle Bachman is a freacken lunatic.

[Mattie]

so true, I live in MN, and just don't understand how she gets elected. I worked in her district for 26 years, they aren't bad people. Who knows!

[macbabe]

you lost me at "Michelle Bachman said'

[sydney01]

ACORN did not get any money from the stimulus. They are able to compete for funds...with thousands of other organizations. Once again, Malkin and Fox spreading non-factual information.

[GrainOSand]

You tell them handyman. Michelle has got our back, she cares for America, as do the bankers, Those darned irresponsible people -- they are the ones who started this crisis!

Things are heating up now as it becomes clear how the message of fear will be framed.

The most important idea to take from Mrs. Smith's bearing of her personal struggle is:

"Ultimately, we are all in this together."

Whether we like it, or realize it, this remains true.

[scjk67]

so you believe in lies....huh? sheesh!

[Rosewren]

"in it together" is really right on the mark. There have been least 10 or 15 foreclosures on my little street which at one time were all homes occupied by young couples with children. Property values have totally tanked so anyone in a bad deal has no way to refinance as they are all under the water, plus, then it comes to layoffs it is the younger workers without seniority that go first. Just a vicious cycle.

[GrainOSand]

***Correction:The most important idea to take from Mrs. Smith's baring of her personal struggle is:"

[zedthewizard]

obviously the free market has dictated that military people who put their lives on the line for our country are relatively worthless compared to the invaluable wall street brokers and bankers. and you can't argue with that logic -- free market logic.

[Bernique]

The gops will say "they took advantage".

[sammy cole]

Everyone's story is tragic. I think the solution is for ALL LENDERS to LOWER ALL mortgages to 3% fixed rate for 30-years...no questions asked...and the Govt can figure out how to cover this so that investors are not effected. Unfortunately...this idea is TOO simple for OUR Govt.

[drymartini1]

let govt. buy up ALL mortgages.

[kassandrasduplex]

Why should the investor class be spared? Don't they already own or control some 80% of the wealth of the nation? (top 5%) One landlord in New York owns 20,000+ separate rental units. That frankly is obscene.
I've seen recently the banks are jacking credit card rates to 30% (wasn't usury illegal?)
What we need is REDISTRIBUTIVE policy. Land reform, progressive taxation and debt forgiveness. Anything else is putting off the inevitable. The Ruling Class will eventually get all the money back anyway; that's what they do best, siphon like leeches.
I have also read in my local paper today that the foreclosure plan basically only helps Fannie Mae and Freddie Mac mortgages which, if I recall correctly, only account for some 20% of the bad assets.

[kassandrasduplex]

And let's not forget Henry Kravis who makes $51, 000 per hour. Why should billionaires be protected?

[kassandrasduplex]

Watch this and see if you still the investor class should be spared...

http://bravenewfilms.org/blog/?p=20619

[Mattie]

no not every story is tragic, the woman yesterday, Connie was her name I think, made horrible financial decision. She took the equity out of her home, to pay credit card debt, and took out an interest only loan. This woman's story has medical issues, and they are a family that has served this country. I have no problem helping people who have had medical issues or unemployment issues, but the woman yesterday got into her situation out of pure greed. I would hope the banks would work with this woman and her family, they sound like they would make good on their loan in the right circumstances. The woman yesterday made one bad decision after another, and I would expect that trend to continue. The woman in this story, sounds like she has common sense, she just didn't have any control over her circumstances.

[Merewen]

Wow. Judgemental much?

[CitizenKane16]

Well I'm just going to assume that you've never made any mistakes, well, with the exception of your pride in being so high and mighty.

[hopeca]

What an amazing feature from the Huffington Post! Thank you for giving people a forum for sharing these important stories.

[vesaversa1]

This truly not acceptable .