For those facing financial hardship, life can be difficult. Creditors can be calling to try to recoup missed payments. There may be fear that a car will be repossessed or that one’s home will be foreclosed upon. Under the right circumstances, these issues may be faced by people from all walks of life.
Recently, former professional football player Eddie George and his wife found themselves facing foreclosure on an 8,550-square-foot home they had been trying to sell. It was supposed to be auctioned earlier this month. According to the couples’ accountant, the foreclosure sale came as a surprise to all as they were in the process of trying to secure a loan modification.
The couple was seeking to modify their loan because they reportedly owed more on it than the amount it is currently valued. They apparently purchased the property in 2007 for $1.675 million. Since then, however, the value apparently dropped significantly.
Their accountant indicated that the couple stopped making payments on the loan when it was discovered that the bank would not work to modify a loan that was current. As a result, they purposely withheld making payments to try to prompt the modification. During the period of time when they were not making the payments, their accountant said he had been in communication with the mortgage provider. He reportedly had no advanced knowledge of the foreclosure action.
Though the homeowner in this case is a well known individual, this same thing has likely happened to others who have found themselves upside down on their mortgages.
Source: USA Today, “Eddie George surprised by foreclosure auction notice,” Josh Adams, June 9, 2012