During the great recession, foreclosures became commonplace all across America. While any foreclosure is a horror story on its own, some people had worse than typical foreclosure experiences. Business Insider compiled a list of some of the worst mortgage horror stories from the recession. Here is a summary of what they found.
The Robbery That Wasn’t – One woman thought she was being robbed, but it turns out J.P. Morgan Chase didn’t bother to call her to let her know that a locksmith was coming to change the locks on her house, which they didn’t realize she still lived in.
What a tease! – One man purchased a new home for his family with a $2,700 per month mortgage. He was shocked when he found out he was duped with a “teaser rate,” and starting the third month his payment ballooned to $3,600.
Refinance mortgage fraud – A Pennsylvania man was well on the way to paying off his entire mortgage when his wife passed away. Left to support his three children on his own, he decided to refinance to lower his monthly payment. But it turns out his 30 year fixed mortgage wasn’t all it was cracked up to be. In fact, the bait-and-switch loan had an 8.8% interest rate and increased to 13% after two years.
Newlyweds Always Paid On Time, Except They Didn’t – Mark and Brooke started their marriage with the best of financial intentions and started dutifully paying their Wells Fargo mortgage every month. One day, they started getting calls from collectors about their missed payments. It turns out Chase sent the payment to the wrong place, and it wasn’t until they reported the situation to the local news that it got any attention and was finally fixed.
Even a great real estate agent can’t protect you from the wrongdoings of your bank, so once you buy your home, always pay attention to your statements and make sure your home is safe from horror stories like these.