Tom P, via the Internet
Thank you for the quick response!  I have called the agency to explore my options on our mortage.  I avoided pre-forclosure and my mortgage is current.  Thank you for being out there to help people.  Pride gets in the way of asking for help, sometimes until it gets too late.


Molly O, South Minneapolis
Molly and her then-husband started looking for a home in the fall of 2005. It was something they had always wanted – something she’d always wanted. “We found this absolute gem of a place in South Minneapolis,” gushed Molly. The couple closed in December of that year.

 

Unfortunately, the fairytale didn’t continue into the following year. Molly and her husband separated that following fall, leaving her to shoulder their new mortgage on her own.

 

At the time, Molly turned to a friend who worked in the financing industry for help. He set her up with an adjustable rate mortgage (ARM) with fixed payments for the first three years and a second mortgage to help her manage mounting credit card bills and other debts that began piling up after the divorce. 

 

Molly headed into 2007 feeling like life was getting back on track. She was enjoying her work serving at an area restaurant and gardening.

 

But then Molly was diagnosed with breast cancer. She had a double-mastectomy late that summer and was out of work for months as she dealt with the recovery.

 

Even before her surgery, Molly reached out to her mortgage company to let them know she would be without income for months and would likely be unable to keep up on her mortgage. Despite her efforts, Molly’s pleas fell on deaf ears.

 

“No one would talk to me. I couldn’t get a consistent person, let alone consistent answers,” said Molly. “I returned to work as soon as I could and made a double-payment in December so that I wouldn’t be more than three months behind on my mortgage and move into foreclosure.”

 

Then Molly noticed a list of references in her “late letter” from the mortgage company – Twin Cities Habitat for Humanity offered free mortgage support counseling to area residents. She called immediately, and within no time was connected with Nick, a foreclosure prevention specialist there. That’s when Molly started to notice a change.

 

“The counselors were able to talk with people at [the mortgage company] that I couldn’t get through to, and they were able to get answers I never could,” said Molly. “Having someone to advocate on my behalf with the mortgage company and to navigate me through the process is what made all the difference. It’s what kept me in my home.”

 

Now things are looking up for Molly. Through her counselor’s advocacy, she was able to make a “loan modification” in the spring of 2008. The changes dropped her interest rate on her primary mortgage to a fixed-rate five percent, and the interest rate on her second mortgage from 11 percent to a fixed four percent.

 

When asked if she would recommend foreclosure prevention counseling to others struggling to keep up with their mortgage, Molly had one word: “Absolutely.”

 

“The counselors I worked with were incredibly responsive – I always got an answer to my questions within 24 hours,” she continued. “Before I started working with them, I felt like I was banging my head against a wall. But once I started working with Habitat for Humanity, things really started moving forward. Now I have my mortgage and my home. I really can’t say enough about the help I received.”