There is an obvious problem with regard to the mortgage industry in America when a family that purchases a home for an original price $500,000 ends up owing $880,000 before being evicted. Then, taking advice from their personal attorney, the family finds it justifiable to repatriate their home after it had already been bought and sold twice, and all the while local police look on without taking any action.
The madness of the foreclosure mess is becoming more and more apparent each day.
The Earl family of California claims that they were illegally evicted and have forcefully reentered there home after having been foreclosed on.
Enter the Earl family in Simi Valley, Calif. Over the weekend, Jim and Danielle Earl reportedly took their nine children, ages 9-23, and a locksmith and broke into the six-bedroom house they used to call home. The move was recommended by their lawyer, according to a story on Aol’s HousingWatch.com.
Police officers were on hand when the Earls changed the locks Saturday but did not intervene, the Ventura County Star reports.
The Earls paid $500,000 for the house in 2001 and then refinanced to pull out cash. They fell behind on their mortgage and at the time of their eviction they owed about $880,000 on a no-interest mortgage.
Investors at Conejo Capital bought the house for $697,000 at a lender’s trustee sale and put $40,000 of work into a remodel, replacing carpeting and appliances, as well as upgrading the kitchen. They flipped it to new buyers for $800,000. Those buyers were supposed to move in this week; those plans are on hold.
The Earls claim that they were working with GRP Financial Services to catch up on payments, but discovered a $25,000 difference between what they believed they owed and what the bank said they owed. They then stopped making payments.
There is an obvious problem with regard to the America’s mortgage industry when a family that purchases a home for an original price $500,000 ends up owing $880,000 before being evicted. Then, taking advice from their personal attorney, the family finds it justifiable to repatriate their home after it had already been bought and sold twice, and all the while local police look on without taking any action.
