Attend to your mortgages  

One of the achievements an immigrant can hope for and attain in his or her immigration journey is home ownership. Having a house you can call your own is part of living the American dream. It is not only a possession or a piece of property. A house becomes a home where a family is raised, love is shared, and memories are made. It is shelter after a tiresome day, a refuge from a chaotic world and a place to welcome friends and strangers. What if one day you realize that you don’t own your house anymore?

Let’s take the case of Gloria, a hardworking woman who worked two jobs to make ends meet. For so many years, she and her husband diligently set aside money towards the downpayment for a house they wanted to buy. In time, they were able to do so through bank financing and moved in. As they were financially able, they had been paying their monthly mortgage timely and accurately. Through the years, their house had been their source of pride and joy as they made improvements and renovations that suited their tastes and their lifestyle. After a decade or so, Gloria’s husband died leaving her to continue paying the balance of the 30-year mortgage.

During the first few years of paying the monthly mortgage by herself, Gloria, who had a solid stream of income from her two jobs, didn’t have any difficulty at all. But then something unexpected happened. Gloria was diagnosed with cancer and had to undergo emergency surgeries, radiation treatments, and chemotherapy. Because of this medical condition, she wasn’t able to continue working two jobs anymore and worse of all, when COVID-19 hit, she was asked by her remaining employer to work part-time as the company was experiencing a financial downturn. She had no choice but to live under a limited and lower income.

She had to work even part-time in order to continue her health insurance especially as she is undergoing cancer treatments. Inevitably, she wasn’t able to pay her mortgage and eventually the bank warned her that her house would be foreclosed. As her medical condition worsened, she was too weak to respond to the bank notices and attend court hearings which eventually led to foreclosure and eventual sale to another person. The new owner is now suing her for eviction claiming she has been illegally living in the house.

Gloria was so shocked upon hearing this. She sought the advice of a foreclosure attorney who told her that little to nothing could be done anymore at this point as far as legal remedies are concerned. She had no choice but to leave the house and start looking for some other place to stay. At 85 years old battling cancer and in what is probably in the last days of her life, finding a place to stay shouldn’t have been Gloria’s problem.

So what can we learn from her experience? Aside from paying off the mortgage as an overriding priority, make sure that in the event of an unfortunate situation such as a disability, chronic medical condition, loss of jobs, or other unforeseen life circumstances, that you have your liabilities covered either by savings, insurance, or other forms of risk-mitigation strategies. Smart and realistic financial planning is a must.

Also, be aware of any programs offered by the government or other organizations offering assistance to families who are at risk in losing their homes. Seek help as early as you can in order to prevent further ill effects to your mortgage and to your overall financial well-being. Talk to your lender bank and arrange for special payment plans. Banks want to maintain a good relationship with their clients and they are just too happy to accommodate reasonable requests. Always open and act on any notices received from the bank or the court.

The defense of not having read or learned of any action pending against you is not an excuse. Their act of just merely sending you a notice is enough to satisfy the legal requirements in foreclosure proceedings.

When I learned about this situation from Gloria herself, I felt sad for her. I was a witness to a few of her well-attended parties in her house. She was constantly beaming with satisfaction on how they repaired, improved, and upgraded the house with their own sweat and blood. All were welcome to stop by her house, even uninvited or at a moment’s notice. Now, in her dying days, she may not have a house to rest her weakened body or even be comfortable in her last moments.