Even in the face of hardships, a house is NOT an ATM.
25231 Del Rio, Laguna Niguel, CA 92677-1517
Current amount owed: $786,000!!
2009-09-07: One Family: Option ARM, failed Modification, Health Issues, Bankruptcy, and more
2009-09-06: Family faces loss of home amid health crisis
LAGUNA NIGUEL – When Juergen and Lois Kempff received a notice of default in the mail saying their home was now in the foreclosure process due to missed payments, they figured it was junk mail.
The notice came from a company they didn't recognize, and to be honest, they had some heavier thoughts on their minds.
...the Kempffs' option adjustable-rate mortgage payment skyrocketed to $4,300 a month from $2,500 last December. Seeing no way to afford the new payments, the Kempffs opted for a loan modification from their bank, IndyMac which was later purchased by OneWest from the FDIC in March.
The unpaid amount on the Kempffs' loan is $786,802.59, short of qualifying for a modification by about $60,000.
Since the Kempffs purchased their home in 2002, they took out loans and refinanced their mortgage. The equity from those transactions enabled the Kempff family to fix their cracked pool, remedy a slipping backyard slope by putting in three retaining walls, help three children pay for college and pay for the medical bills of their youngest son who had malignant melanoma.