Comments

  1. Thank you for any other magnificent article. Where else may just anyone get that type of information in such a perfect approach of writing? I’ve a presentation next week, and I’m on the search for such information.

  2. In Austrlia we do not have foreclosure so we do not have the luxury of just walking away from a property if we cannot afford it anymore. In Australia we are stuck with the house and the bank loan. If we sell the house we are stuck with the large amount of money that is left after the bank loan and legal people are becuase he house was worth less than the loan.
    Your article is such a cop out!!!!! You left the house to the bank and they took the rap for your negligence in nor doing your research on the market where you purchased the house. $1200 a month negative on the house means you did not do your research before buying and then left the problem to the bank. This is exactly the thing that caused the Financial Crisis in America which then also badly affected us in Australia.
    You people just do not take responsibity and dump your debt onto someone else which then affects everyone else as the bans end up in a bad way. In Australia we take resposnsibilty and anyone in Australia who has your situation would hve to delate banktruptcy if they wanted to get out of this which menas a bad life for may years and the loss of everything they own and they cannot earn very much much for tears either or even own their own house.
    You have it easy so stop being such a complainer!!!!!!!!

    • Thank you for taking the time to share your opinion. This post is most certainly not about complaining and I’m sorry you feel you have to stoop to name calling to make your point. All points of view are welcome on this blog and I invite the discussion. However, I also feel I need to point out (as it clearly states in my blog post) that I DO take responsibility for my debt and we did not take this situation lightly at all. You are right that we did not do enough homework before investing in the property, and I take full responsibility for that. At the same time, we trusted the real estate advisers we hired. We shouldn’t have. Of course that’s easy to say in hindsight. Lesson learned. I will never do it again.

      I also feel the need to point out that the bank did not take the rap for my negligence. They were party to the situation to be sure. If you don’t believe that I’d suggest you watch the documentary “Inside Job” to learn a bit more about what really went down here. The crisis was driven by the financial services industry and many in the real estate and mortgage industry. I’m not saying that absolves home buyers, but I don’t think it’s fair to vilify all home buyers as irresponsible. You can watch “Inside Job” at http://www.moneysuccesshappiness.com/2012/03/the-consequences-of-greed/.

      In our case, we tried for over a year to work things out with the bank so we wouldn’t be forced to walk away. They wouldn’t even talk to us.

      As you’ll see if you choose to watch “Inside Job,” the financial services industry was at the core of the problem. Yes, some people were probably knowingly biting off more than they could chew. But many others were just trying to realize the American Dream, get ahead, or finance their retirement (like we were). And the real estate and mortgage industry experts promised all of this. I remember when I bought my first home in 1988. I didn’t think I could afford the mortgage but the bank said I could. I trusted them (back then I think you could trust them a lot more) because they understood how mortgages and taxes work better than I did at the time. I was able to afford that home no problem. So, am I surprised that years later when I was told by the experts that I could afford this home… and told by the real estate expert we had hired that the rent would put us at break-even? No. At the same time, I know in the end I am the one who chose to buy the home and I should have done more homework. I can’t go back and change that now. All I can do is learn from it, and move forward. And try to help others learn from it, which is the purpose of this blog post.

      Thankfully the mistake didn’t have to ruin my entire life, and I wouldn’t wish that on anyone. I do think we have a huge problem in this country that needs fixing, and unfortunately many European countries are now also facing financial crises which will likely affect the U.S. I don’t think anger, blame, and name calling are the answer. There’s plenty of blame to go around. But what’s done is done.

      I believe that education, and shining a light on all the reasons for the problem in the first place, will go a lot further in cleaning up this mess and preventing it from ever happening again. That’s why I write this blog and why I wrote my book.

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  4. Just wondering, did the bank pursue a deficiency judgement? I would think a judgement by the court would make it a lot more difficult. thanks

    • Debbie LaChusa says:

      I agree that would make it a lot more difficult. Thankfully we did not have to deal with that.

  5. OMG this gives me hope! Hubby and I got our foreclosure notice on 7/23/12 and it makes you feel like a loser. For our 32 years of marriage we have had perfect credit (900 score) but due to hubby’s prolonged joblessness (43 months and counting) it’s now down to around 450. He’s 63 and took his Soc Sec retirement early @ 62 but its a drop of what he used to earn, His take home pay used to be $6k/month but now it’s only $1,798/month so we can’t pay our house pmt of $2,800 at all nor our five maxed-out credit cards. We’re bound and determined to pull ourselves outta this somehow but I have to admit it’s a strain on our marriage, worse than anything we’ve ever been through. California’s job market sux unfortunately.

  6. Jonathan says:

    Debbie, thank you so much for this wonderful blog. I am currently facing my foreclosure date in about two weeks. It has been an exhausting couple of months dealing with Chase. I’ve spent tons of my time and money trying to short sale and go through the deed in lieu of foreclosure process. All of that work to end up with the same result, which is foreclosure. Now I feel as if I should have totally neglected this and completely turned my back instead of being a property manager for the bank. I feel completely taken advantage of and scared at this moment as I look ahead with not much optimism…

    • Debbie LaChusa says:

      You’re welcome Jonathan. Hang in there. It does get better. And it doesn’t take as long as you might think.

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  1. [...] not alone. In fact, foreclosures quadrupled from 2005 to 2009. … Read the original here: There is Life After Foreclosure ← Foreclosure Short Sales and the Tooth Fairy Save Your Future and Your Credit – [...]

  2. [...] as I wrote last week on this blog, financially, we’re back on [...]

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