Senior Couple Saved From $2 Foreclosure

Senior Couple Saved From $2 Foreclosure
by Peter G. MillerDecember 1st, 2008
The Albuquerque Journal is reporting that efforts to foreclose on an elderly couple have been stopped. Now you might think that with foreclosures rampant in many areas that big money was at stake, but that was not the situation here: The couple owed all of $2 and the matter was settled with a $4 payment and help from attorneys with the Senior Citizens’ Law Office. Dixie and Paul Williams, says the paper, had obtained an SBA loan in the 1970s and really did owe $1 per year.
When they failed to make the payment to latest owner of the debt, the lender filed for foreclosure. With penalties the amount owed was a whopping $2 and the matter was resolved with a $4 payment. You have to wonder: Is it really a good idea that lenders are allowed to foreclose when so little is owed? This is a case where the mechanics of the law and common sense collide.
Yes, lenders have rights. But the law not only includes words as they are written, it also includes the concept of equity, or fairness. What is fair about a couple in their mid-80s losing their home over $2? You might think that the lender would have grabbed some pocket change to resolve the matter. It would have reduced the lender’s legal fees, eliminated a possible foreclosure from the books and prevented a PR debacle. Hopefully bank regulators will want to review the lender’s books with great care to assure that every nickel and dime are where they should be — and to levy the largest possible penalties if that’s not the case.
Here’s a concept: If the couple’s property has equity, then instead of foreclosing why not suggest a reverse mortgage? The couple could have stayed in place and money would have been available for repairs and living expenses. As to the Senior Citizens’ Law Office, they deserve credit for helping people in need while the Albuquerque Journal should be congratulated for following the old standard of journalism, comforting the afflicted — and afflicting the comfortable.
For the full story, see: Couple Won’t Lose Home Over $2, November 29, 2008.