Democratic Underground Latest Greatest Lobby Journals Search Options Help Login
Google

Extreme Makeover Family Facing Foreclosure

Printer-friendly format Printer-friendly format
Printer-friendly format Email this thread to a friend
Printer-friendly format Bookmark this thread
This topic is archived.
Home » Discuss » Latest Breaking News Donate to DU
 
sabra Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Dec-08-08 01:00 PM
Original message
Extreme Makeover Family Facing Foreclosure
Source: wxyz

(WXYZ) An Oak Park family who received a Extreme Makeover for their home is now in danger of losing it to foreclosure.

Larry and Judy Vardon got into financial trouble because of extensive medical bills for their youngest son, Lance. The 16 year old is blind and autistic. His medical treatments are not covered by their insurance.

The Vardons were also hit by the subprime housing crisis. Their mortgage rate jumped to 11 percent after it adjusted. Larry Vardon is also worried about being laid off from his job at the Chrysler Stamping Plant in Sterling Heights.

Many of the Vardons' neighbors had thought that their mortgage was paid off when they appeared on the show in November 2004, but that was not the case. Now the home is one of the 390 in Oak Park currently in foreclosure.

...

Their problems stem from after their appearance on the show when they remortgaged the house. The needed the extra money when Larry was laid off. Since then the mortgage has been resold to different companies three times, with the interest rate jumping each time.



Read more: http://www.wxyz.com/news/local/story/Extreme-Makeover-F...
Printer Friendly | Permalink |  | Top
Double T Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Dec-08-08 01:03 PM
Response to Original message
1. Single payer health care would solve most of this problem.
Printer Friendly | Permalink |  | Top
 
Lance_Boyle Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Dec-08-08 01:09 PM
Response to Original message
2. remortgaged after the show
in other words, "we've been given something nice - let's cash in." They should have sold and downsized if they wanted to pull that money out. They got greedy. Fuck 'em.

Printer Friendly | Permalink |  | Top
 
LostinVA Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Dec-08-08 01:13 PM
Response to Reply #2
3. This has been reported on here before -- that's exactly what they did
Edited on Mon Dec-08-08 01:29 PM by LostinVA
At least one other family has done the same thing.

I investigated this:

They got the Makeover, the husband was laid off, they mortgaged their paid for home re: subprime loan (which I didn't even know you could do until now), which has now went through the roof. The father has been employed for a long time now, and they do have medical insurance but the stupid company won't pay for certain things.

Some of it isn't their fault (medical bills for son), but some is. They had a paid-for home. They should have sold it and downsized -- it would have also eased their property taxes per the article. They choose not to do so.

I have alot if sympathy for them, but they could have eased some of this burden off themselves years ago. I've been a homeowner and have had HUGE financial problems that weren't my fault, so I did the prudent thing and cut expenses and got a part-time job on top of a full-time job. If things hadn't tuned around, I would have sold my home. I never would have traded in my 30-year fixed for subprime, and I was quite desperate for many months, and my mortgage wasn't paid off.

And, I agree that single-payer health insurance is long past needed for this country.

Printer Friendly | Permalink |  | Top
 
truedelphi Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Dec-08-08 01:13 PM
Response to Reply #2
4. Or maybe they needed money immediately -more immediately than the "sale" of the home would have
Offered.

I cannot say whether they are greedy or not, but I bet (like the first respondent here) that if we had Single Payer Universal Health Care, they woul d be in a whole different ball game.

(the housing market has not been good in many parts of the country since late 2005)
Printer Friendly | Permalink |  | Top
 
Tempest Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Dec-08-08 01:15 PM
Response to Reply #2
5. Read the Goddamn story

After their appearance on the show, Larry was laid off and they remortgaged the house. Since then the mortgage has been resold to different companies three times, with the interest rate jumping each time.

The family's debts include $20,000 in medical expenses for Lance.



Where are all you heartless assholes coming from?
Printer Friendly | Permalink |  | Top
 
uncle ray Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Dec-08-08 02:20 PM
Response to Reply #5
10. what's the rest of their debt from?
if the bulk of it was the 20,000 med bills, then a small mortgage would have a very small monthly payment. it seems a small part of their debt is medical related.
Printer Friendly | Permalink |  | Top
 
Tempest Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Dec-09-08 09:50 AM
Response to Reply #10
23. Their mortgage interest rates increased by double digits

How much clearer can the story be?
Printer Friendly | Permalink |  | Top
 
uncle ray Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Dec-09-08 10:57 AM
Response to Reply #23
28. the house apparantly WAS paid off at one time.
the article says it was REmortgaged, so how much was it mortgaged for? it seems they must have significant other debts beyond the 20g medical debt. if their only problem was 20 grand in medical debt, the mortgage could have been quite small, with payments of only a few hundred dollars, so even if the rate skyrocketed it still should have been manageable. the interest rate going up doesn't answer my question about what the rest of their debt is.
Printer Friendly | Permalink |  | Top
 
mopinko Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Dec-08-08 03:28 PM
Response to Reply #5
16. i have never heard of this- reselling mortgages and changing terms.
in my experience, the reselling of mortgages does nothing to affect the terms. i would be interested to know if others know differently. but ours has been rolled many times in 20 years, and it never made one penny difference to us.
Printer Friendly | Permalink |  | Top
 
Tempest Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Dec-09-08 09:49 AM
Response to Reply #16
22. It's all part of the derivative market

And that's the market that caused most of the problems.
Printer Friendly | Permalink |  | Top
 
WriteDown Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Dec-09-08 10:18 AM
Response to Reply #22
26. Please elaborate how that works for us?
Haha. Derivative's? Seriously?
Printer Friendly | Permalink |  | Top
 
Tempest Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Dec-09-08 01:23 PM
Response to Reply #26
31. Seriously

Whether you choose to believe in it or not is your prerogative.

Printer Friendly | Permalink |  | Top
 
WriteDown Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Dec-09-08 02:01 PM
Response to Reply #31
32. That's not an answer. NT
Printer Friendly | Permalink |  | Top
 
Lance_Boyle Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Dec-09-08 01:20 PM
Response to Reply #16
30. the "changing terms" was the ARM resetting
it was not a change of terms - they agreed to the adjustment when they purchased the ARM. That's what the effing "A" stands for. The non-response below blaming "changing terms" on "derivatives" makes about as much sense as a drunken toddler reciting Plato.

Printer Friendly | Permalink |  | Top
 
mountainvue Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Dec-10-08 01:30 AM
Response to Reply #16
34. If the resale of the mortgage changed the
terms then it's a violation of RESPA.
Printer Friendly | Permalink |  | Top
 
WriteDown Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Dec-09-08 10:05 AM
Response to Reply #5
24. Uh,
That's impossible. The story makes it sound like each company raised the mortgage rate. It doesn't work that way.
Printer Friendly | Permalink |  | Top
 
w4rma Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Dec-08-08 01:16 PM
Response to Reply #2
6. To avoid bankrupcy from medical bills. (nt)
Printer Friendly | Permalink |  | Top
 
BR_Parkway Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Dec-08-08 01:32 PM
Response to Reply #6
8. Not to mention, having very little equity in the house would have meant
they could keep it in the event of a bankruptcy - dont' know what the amount is that would have triggered a requirement to sell it and apply to the other debts.

And yeah, there sure do see to be a lot of hard hearted "Democrats" around lately, haven't seen this much "fuck em" attitude since DU :P
Printer Friendly | Permalink |  | Top
 
mopinko Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Dec-08-08 03:31 PM
Response to Reply #8
17. little equity? how
could they have that kind of improvements at no cost and have little equity?
Printer Friendly | Permalink |  | Top
 
BR_Parkway Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Dec-10-08 07:28 AM
Response to Reply #17
35. If they borrowed out the max to get it under whatever figure the state
says is the amount of equity in a home they could keep in a bankrupcy
Printer Friendly | Permalink |  | Top
 
yardwork Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Dec-08-08 02:36 PM
Response to Reply #2
11. Their son has serious health problems - maybe they needed the money.
Printer Friendly | Permalink |  | Top
 
wolfgangmo Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Dec-08-08 03:03 PM
Response to Reply #2
13. Lance - a boil on the ass of America
Where is a link that proves what you are talking about? They did not cash in. They took out a 2nd mortgage to pay for medical care for their son. Said mortgage was then bundled and sold and made expensive to help pay some speculator enough money for his 5th mercedes.

So you forgot what it means to be human. So fuck you too.

People are hurting and you are blaming someone for taking whatever mortgage he could to help his son. America should have health care. And you have the balls to blame these parents.

Fuck you.
Printer Friendly | Permalink |  | Top
 
cosmicone Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Dec-08-08 03:20 PM
Response to Reply #13
14. I actually agree with Lance...
There was no need to remortgage a free and clear property just because the husband was laid off. He worked at Chrysler so his income didn't go down to 0 but he was earning enough for food and utilities.

I smell a major cashing-in which a lot of people who inherit freebies do.
Printer Friendly | Permalink |  | Top
 
Occulus Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Dec-09-08 02:50 PM
Response to Reply #14
33. You need to read post #18. Stat. n/t
Printer Friendly | Permalink |  | Top
 
OneBlueSky Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Dec-08-08 03:45 PM
Response to Reply #2
18. you should investigate before writing this family off with "Fuck em" . . .
I saw this show, and the house they received was constructed specifically for their needs . . . both parents are deaf, and the son is blind and autistic . . . the house has all kinds of high tech gadgetry to help them keep track of him (apparently he had a habit of wandering off) . . . for example, they have an in-house tv monitoring system so that the parents can watch Lance no matter where he is in the house . . . also, the bed they were given is rigged to vibrate when someone tries to open the front door or when there's a fire (an audio alarm would be worthless to deaf parents) . . . and Lance has a playroom that has all kinds of tactile activity areas that help him experience the world that he can't see or, for the most part, comprehend . . .

so just selling the house would put them right back to where they were before ABC provided it for them . . . these folks seemed like a wonderful family, and I have a great deal of empathy for them . . . I hope ABC and the Extreme Makeover team will step forward to help them through this crisis so they can keep their house, which for them is far more than just a dwelling . . .
Printer Friendly | Permalink |  | Top
 
Zuiderelle Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Dec-10-08 10:05 AM
Response to Reply #2
37. Wow, asshole much?
Printer Friendly | Permalink |  | Top
 
slackmaster Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Dec-08-08 01:27 PM
Response to Original message
7. Kudos to WXYZ for telling the real story
This story is head and shoulders above the usual empty tear-jerker foreclosure story.
Printer Friendly | Permalink |  | Top
 
CraftyGal Donating Member (602 posts) Send PM | Profile | Ignore Mon Dec-08-08 02:05 PM
Response to Original message
9. I remember this story...
the family appeared on Dr. Phil. The couple has taken full responsibility and are going through debt consolidation and counseling. I would love to see what the hard asses would do if faced with the same issues. I am very thankful that I live in Canada.

CraftyGal
Printer Friendly | Permalink |  | Top
 
Fumesucker Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Dec-08-08 02:40 PM
Response to Reply #9
12. The hardest asses are almost always the biggest whiners..
When it is their particular ox being gored.

Printer Friendly | Permalink |  | Top
 
One_Life_To_Give Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Dec-08-08 03:28 PM
Response to Original message
15. What kind of Mortgage goes up because of sale?
Since then the mortgage has been resold to different companies three times, with the interest rate jumping each time.

What kind of a contract allows that?
Printer Friendly | Permalink |  | Top
 
Sadie5 Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Dec-09-08 09:07 AM
Response to Reply #15
19. Some do go up a bit
The escrow account which pays for insurance and taxes might fluctuate with each company. some want a cushion of a few dollars, some not.
Printer Friendly | Permalink |  | Top
 
slackmaster Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Dec-09-08 09:14 AM
Response to Reply #19
21. That is true
The P&I can't change.
Printer Friendly | Permalink |  | Top
 
WriteDown Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Dec-09-08 10:07 AM
Response to Reply #19
25. No...
Its all done by RESPA. A two month cushion is always required.
Printer Friendly | Permalink |  | Top
 
slackmaster Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Dec-09-08 09:14 AM
Response to Reply #15
20. The interest rate cannot go up because of a sale
Edited on Tue Dec-09-08 09:15 AM by slackmaster
It sounds like transfers were timed to match scheduled rate increases.

Obviously a rate increase also raises the likelihood of a default.
Printer Friendly | Permalink |  | Top
 
area51 Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Dec-09-08 10:31 AM
Response to Original message
27. "... got into financial trouble because of extensive medical bills"
Printer Friendly | Permalink |  | Top
 
Miss Chybil Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Dec-09-08 01:01 PM
Response to Original message
29. Mortgage rates cannot change when the mortgage is sold to another company.
All original terms apply. They must have gotten an ARM in the first place.
Printer Friendly | Permalink |  | Top
 
LisaL Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Dec-10-08 07:51 AM
Response to Original message
36. And people who win millions in the lottery sometimes end up
bankrupt. It happens.
Printer Friendly | Permalink |  | Top
 
DU AdBot (1000+ posts) Click to send private message to this author Click to view 
this author's profile Click to add 
this author to your buddy list Click to add 
this author to your Ignore list Thu Sep 18th 2014, 06:52 AM
Response to Original message
Advertisements [?]
 Top

Home » Discuss » Latest Breaking News Donate to DU

Powered by DCForum+ Version 1.1 Copyright 1997-2002 DCScripts.com
Software has been extensively modified by the DU administrators


Important Notices: By participating on this discussion board, visitors agree to abide by the rules outlined on our Rules page. Messages posted on the Democratic Underground Discussion Forums are the opinions of the individuals who post them, and do not necessarily represent the opinions of Democratic Underground, LLC.

Home  |  Discussion Forums  |  Journals |  Store  |  Donate

About DU  |  Contact Us  |  Privacy Policy

Got a message for Democratic Underground? Click here to send us a message.

© 2001 - 2011 Democratic Underground, LLC