Classic Case

Depleted all his savings….

Don’s home had a Notice of Default recorded at the end of July and I met with him last week.  This home was given to him when his parents passed away many years ago.  This home has been in his family over 50 years, so he has some very strong emotional attachments to this property.

As I sat with him a local diner it was very evident that the prospect of losing his family home was weighing heavely on him.  He has been struggling to make things work ever since he was laid off his print pressing job a few years ago.

After being laid off Don immediately applied for unemployment to help ends meet.  He was able to collect for over 2 years but it ended this past year.  While unemployed he ran into some medical issues that ultimately landed him in the hospital and off his feet for over 6 months.  This meant he couldn’t actively look for work.  He then used all his savings and the little retirement he had left.  All his savings and unemployment benefits ran out this year and he no longer could make payments on his house.

Fortunately he does have a pension that’s paying him 800$ a month.  However, his expenses including his mortgage is just over $2000 a month.  His mortgage is 933$ with an interest rate at just over 5%.

It’s not hard to recognize that he has no other option but to sell the house and salvage whatever he can of the equity that’s left.  However, the emotional attachment to this family home are preventing him from seeing things clearly and could risk him losing everything.

I was able to analyze his situation and financial picture to help him see that unless he wins the lottery or someone gives him the money he’s going to lose everything.  I wanted him to realize for himself that he could take control of his property and not allow the bank to dictate what’s going to happen.  It’s a hard thing to do to separate the emotion from something like this but it’s a must.  I wish more people had the ability to do so.  For Don it’s gonna come down to either the Bank selling his property or he’s going to.  The only way he maximizes his situation is if he does.

Will see what happens!