Shared with me by my daughter Shelby (Carolina Mailbox) today:
I have been made aware of a terrible injustice being done by a local company regarding the foreclosure on a home in Florence.
One of my customers here in Florence had their private disability company cease payments to them after years. Social Security disability is taking years right now to get approved so they are no help for the current situation. As a result they got behind on the house payments for the home they’ve lived in 20 years. They were approved for the federal program to save their home, with the federal government catching up the back payments and up to 12 months of future payments.
Formerly American General, Spring Leaf, the mortgage company, has declined to accept those funds and instead has filed foreclosure. Their stance is that they do not want to participate in the program. American General has also declined to do a modification loan to reduce the payment to help them stay in the home. I don’t understand this, except that the house is worth much more than what is owed on it.
This is very CRUEL! Money is Money and I don’t see why they refuse to accept the payments just because they are coming from a government program designed to stop foreclosures against people who have lost their income due to this economy instead of coming from the homeowner. I think the public needs to be made aware of this! I am sure the person I know is not the only one this is happening to. This is grossly unfair.
To add insult to injury, American General was informed three months ago when this person applied for the program. They ceased any foreclosure activity while waiting on the approval, but have now decided one week ago after he was approved that they would not accept the funds. You can tell I think this is terrible.
I’ve just talked with someone in our local state Senator’s office who tells me that even though the programs are in place to help people who have lost their jobs through no fault of their own, a lot of private mortgage companies/banks refuse the funding and opt for foreclosure instead.
Surely there is a story here! I think the names of companies/banks that refuse to participate should be made public — especially the banks that took federal funds to bail them out when times were tough!
Shelby Jenerette / Carolina Mail Box