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Debt Management Law News

May 28, 2010

Bankruptcy Option Chosen because the Difficulty to Avoid Home Foreclosure Grows

HOUSTON - As the home foreclosure crisis continues to escalate, many homeowners are trying to save their home through a home modification loan.

Despite the government's $75 billion foreclosure prevention program, some homeowners face declaring bankruptcy as the only way to save their home.

One Fox 26 viewer, who is too embarrassed to share his identity, did share his story.

He's a veteran and single parent.

A motorcycle accident left him unable to work. The economy had tanked so his options were few.

"I was concerned because I was behind in my mortgage and they were threatening foreclosure," he said.

His lender was Wood Forrest National Bank. Our veteran says Wood Forrest referred him to HUD for a home modification loan. HUD then referred him to Money Management International (MMI).

"I was concerned about the pending foreclosure date," he said.

That foreclosure was scheduled April 5th. He met a MMI financial counselor. By this time he had found a temporary job and was optimistic about saving his home.

“I was told not to worry about that. That everything was going to be taken care of," he said.

But his MMI financial advisor didn't follow up.

"She never returned my calls. I sent her emails, she never returned those,” he said. “I asked to speak to a manager, none was ever available."

He had a choice: file bankruptcy or lose his home of 13 years.

MMI Vice President Chuck Stanely says his company deeply cares about every one of their clients. He admits his company made a mistake.

"In this particular case our counselor did not respond to the client in a prompt fashion. And we have apologized to the client for the counselor's lack of responsiveness," Stanely said.

Two days before the foreclosure date, out viewer filed for bankruptcy; it was his only option.

An attorney for Wood Forrest said he couldn't comment on this situation; that his bank doesn't have many requests for loan modifications.

Stanley says MMI is now doing things differently.

“We have taken steps to make sure this does not happen to any of our clients because we know how important each client situation is," Stanley said.

www.myfoxhouston.com

Sometimes, debt can be overwhelming, and bankruptcy becomes necessary.
Bankruptcy can sometimes be difficult. If you are considering bankruptcy, contact the Houston bankruptcy lawyers of Weston & Associates, PLLC at 713-623-4242


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