A Rental Property Owner Loses Property to Foreclosure

The US economy is on a tailspin what with unemployment at its peak. As people lose jobs, even those with sound credit history, are faltering on mortgage payments. Hence, foreclosures have become common. Now, an owner of a rental home has filed for bankruptcy. The house had already been foreclosed. After this, the next date for sale is May 7, 2010.

Sixty eight year old Catherine O’Kelly who lives in a cabin in the building measuring 649 square foot was shocked at the news. She listened to the announcement that there would postponement of 20 sales. The lady was aware that the landlord was not current on payments and she does not want to leave the home where she had lived for 12 years. She cribs that she has been regularly making rent payment of $825 and it is not really her fault that the house is going into foreclosure.

Now she wants to buy the house and when told that the bid will start at $175,000, she thought that friends would help her. Now she does not know what to do. She became disappointed to know that she would have to pay $1,700 every month. This was revealed by Ken Kulpa, a loan officer at Seacliff.

Kulpa said that he is trying to negotiate for short sale. He said that he is trying to persuade the mortgage lender to accept less than $433,183. It may be mentioned here that the owner of the property Loren Warwick is 71 years old and has been trying to negotiate for a while with the lender. The value of the property is now tagged at $110,000. The Warwick family has been the owner since 1949.

Kulpa said that Warwick had been treating the property as an automated teller machine (ATM). He had been drawing money from the lender in order to keep his business afloat. However, when the economy started floundering, Warwick downed shutters. He has since then been living on social security. He had expected that he would eventually be current on mortgage and be able to keep property.

Kulpa said that he is frustrated with lenders. The lenders should be more alert when dealing with distressed properties. He had faxed the required documents at least four times but still when he did not receive any response, he was compelled to connect Warwick with a bankruptcy attorney. He regrets that the government bailout money is not being put to right use.