I just had a friend commit suicide because he could no longer pay his mortgage. His lender refinanced his home five years in a row with his payments going from 600 per month to over 1400 per month. The house was biult in the 1940’s and was only 800 sq feet. The lender knew he was on disability and had fixed income with no other assets.
Yes, there were other issues like his disability and his cancer, but when he could no longer afford his home he just gave up.
I’m very sorry to hear about your friend’s suicide. This is a very sad story.
It sounds like the lender was horrible.
I think you would have a hard time finding a lawyer to take the case. My experience is that lawyers only want to take case that they know they will win.
Usually people re-finance their homes to lower their monthly payments. I can only speculate that your friend had an adjustable rate mortgage. (Mr. Greenspan was a big fan of adjustable rate mortgages at one time.)
Good luck.
June 28th, 2010 at 9:12 pm
Well, if someone is going to commit suicide, I’d imagine tehre are deeper issues than just being in default on a loan. Lots of people are in default on a loan or mortgage, and THEY don’t commit suicide…..
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June 28th, 2010 at 9:27 pm
your friend had other options
anyway, i’m looking to buy a house, where did he live?
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June 28th, 2010 at 9:34 pm
I’m very sorry to hear about your friend’s suicide. This is a very sad story.
It sounds like the lender was horrible.
I think you would have a hard time finding a lawyer to take the case. My experience is that lawyers only want to take case that they know they will win.
Usually people re-finance their homes to lower their monthly payments. I can only speculate that your friend had an adjustable rate mortgage. (Mr. Greenspan was a big fan of adjustable rate mortgages at one time.)
Good luck.
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June 28th, 2010 at 10:09 pm
I’m very sorry for your loss.
It is important to point out that the lender didn’t refinance the home. The Borrower, your friend, chose to refinance his home and if he wasn’t able to handle the payments then he is the one at fault. Since he was battling cancer, I am guessing he was liquidating the equity to cover bills.
It is a horrible situation. My deepest sympathies.
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June 28th, 2010 at 10:36 pm
no, the mortage co should not be held responsible. it’s not their fault that your friend bought a house he couldn’t afford. they may not have handled his loan ethically, but he must have had other problems and it’s not fair to put the blame on someone else. i’m sorry, i’ve had a really good friend commit suicide myself, and ultimately-regardless of the circumstances, the person that commits the act of suicide is responsible for their own death and no one else.
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June 28th, 2010 at 10:48 pm
Sorry for your loss
It just seems like there is a great deal of information in regards to the mortgage that isn’t included. For instance, say his original mortgage was at 5%, that would mean his principal was approx $112,000, taking that same amount to get a payment of 1400 would mean that the interest rate was almost 15%
I am curious as to why you seem to feel that the lender is to blame or has a high degree of blame.
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June 28th, 2010 at 11:16 pm
There is more to this story. I’m guessing your friend pulled money out of the house EACH TIME he refin. Which of course would increase the payments.
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June 28th, 2010 at 11:56 pm
First off….I want to say I send my condolences to this person’s family. They are in my prayers.
Here are 5 things to think about before you go blaming everyone that had nothing to do with his death…..
#1 ~ Your friend could not afford the loan from the time he purchased his home. He did 5 cashout refinances in the last 5 years and probably ended up borrowing ALL of his equity. The main reason anyone does that is because they can’t afford their bills.
#2 ~ You blaming a mortgage lender is ludicris. That same lender gave this person 5 chances to learn how to budget their money and they never learned. Homeownership is not for everyone.
#3 ~ That lender took a HUGE risk to help your friend especially if that lender allowed to them to strip all of their equity. Keep in mind that NOW that this person is gone the lender will be forced to foreclose. In the event of a foreclosure, that very lender LOSES 20% of the money that they let him borrow due to attorney fees, lower than market selling price, ect, ect. So now, that lender is has lost tens of thousands of dollars if not more becasue they gave this person a financial chance.
#4 ~ People don’t commit suicide because their mortgage payments are too high. They do this becasue they are depressed and they are empty inside. All the other tough parts of life become harder if you are depressed. Someone should have helped him address his problems rather that help him buy a home he couldn’t afford.
#5 ~ As for you as this person’s friend, you need to learn to accept this tragedy and move on with your life. Stop trying to find a way to "GET RICH" from some bulshit lawsuit you have no chance of winning. I highly doubt your friend would like you parading his twisted life around on Yahoo answers!
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