Banking promises broken
Robert Downes 8/10/09
Banks have been given billions of dollars over the past year to help lower the mortgages of homeowners in danger of foreclosing. But, as noted in the financial news last week, those funds aren‘t being used as intended. And while banks are making record profits and dishing out billions in bonuses to their employees, the pain in Main Street, America continues.
Take the case of William, a 41-year-old single dad who bought his home near East Bay in Traverse City three years ago for $145,000.
Last week, William (that‘s his middle name) saw his dream of home ownership threatened when his house went up for a foreclosure auction in a sheriff‘s sale.
The good news for William is that no one bid on his house, partly, he says, because mortgage holder, Wells Fargo, tacked on $15,000 in interest as well as fees and penalties for an asking price of $164,000, pricing the modest house out of the market. Now, he says, the home goes back to the note-holder and will be relisted by a realtor friend of his. William‘s parents plan to buy the home and sell it back to him in a year or so when he‘s back on his feet.
Complicated? Yes. Unnecessary? Probably, considering William‘s eight-month struggle with Wells Fargo to try lowering his 9.9 percent mortgage.