A story that will at times bring you to tears of sympathy while also leading you to shout out in anger.
From the Journal:
The Borrowers: Sherrie Floyd, 44, a clerical assistant at the Kaiser Foundation, and her husband, Kevin Floyd, 45, a truck driver in Vallejo, Calif.
The House: In June 1995, the Floyds bought a four bedroom, 2,100 square foot home in Vallejo at auction for $170,000. After cashing out of Mr. Floyd’s retirement fund, they put $11,000 down and financed the rest with a 30-year, fixed-rate mortgage from Countrywide. Their monthly payment was $1,500; the rate slightly under 9%.
Current Status: After refinancing several times, their monthly payments reached an unaffordable $5,600. They stopped paying in April 2007 and filed for bankruptcy in December 2007. A hearing in bankruptcy court is scheduled for Monday.
The Debt: The Floyds owe $670,000 in credit card, mortgage and auto-loan debts, according to the claim estimate from bankruptcy court.
Best line of the entire story:
“I want to pay my debt. I pay my federal and state taxes like I’m supposed to, I go to work, and I just can’t find any help,” said Ms. Floyd. “It just isn’t fair.”
Source: A California Couple’s Descent Into Foreclosure, Bankruptcy – By Lisa Lerer, The Wall Street Journal