“The foreclosure filings piling up across the country are taking a toll not just on banks and Americans’ personal finances, but on their mental state as well…The related stress can lead to an increase in unhealthy behavior, like not eating or sleeping properly, self-medicating with alcohol or drugs, and damaging personal relationships or employment. Some have even taken their own lives.
“One couple facing foreclosure in Prineville, Ore., left their car running to kill themselves and their three dogs, according to a USA Today article. ABC News reported that another woman in Massachusetts fatally shot herself after faxing her mortgage company a note saying that “by the time you foreclose on my house I’ll be dead.”
“While these may be extreme examples, there is no doubt that the economic downturn is causing mental anguish for Americans across the board, and that those who are in danger of losing their homes are likely to be hit the worst.”
“The American Psychological Association provides tips for those coping with such financial anxiety. The group suggests that you don’t overreact to a bad situation, but also don’t become passive. It’s important to identify the key problems, formulate a plan and stay focused on improvement and long-term goals despite short-term problems or pain. “
“If you find yourself moving toward unhealthy behaviors — smoking, drinking, drugs, gambling or emotional eating — consider seeking help from a mental-health specialist before it becomes a serious problem or causes damage to your personal relationships or job. Credit counseling services and financial planners can also help in times of economic stress.”
Please take care of yourselves and others in your community. Get Involved.
Your Mortgage or Your Life... 
Sorry everyone – a good thread had began and I had a glitch, made the wrong choice and zapped it somehow. I will see if I can find them again.
First, I wanted to post a response to JP who had said:
After being out of the mortgage business for over a month now, the people who were responsible and didn’t understand the real-estate side of lending, I feel bad for. However, after seeing many homeowners call me to bail themselves out, it leaves me with one question: Why would anybody complain about foreclosure on a home when they got a 30 year fixed a year ago at 100% financing and didn’t pay the mortgage for 3-4 months straight? Riddle me this Batman.
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My reply is:
Here is a typical scenero.
– Joe got a 100% LTV loan with a 1% 5 year qualifying rate POA that has a Neg Am Recast threshold of 125% LTV. Joe had a FICO of 580 with a couple of 60 Day Late payments in the last two years, and a BK that Discharged two and a half years ago. He was not asked to document his income or his assets, and is not required to sign a T4506. He was not required to have any Capital Reserves, PITI or Seasoned Funds. He was given the responsibility to determine for himself how the four different possible amortization outcomes based on the four different payments he could choose from would ultimately effect his financial position. He was told he could Refi to a Fixed Rate at any time, not knowing they could just change the rules at any time. He was told it was foolish to lock up his capital in equity with a 20% Down Payment, because he could invest that money in the stock market from his computer and double it, or spend it on home improvement sell the house and double it. Or take a vacation to Vegas and try double it. Or take the amount of money they are currently spending every month and double it.
Now it is no wonder Joe is calling you all freaked out. He has applied for Refi’s at 20 lenders and brokers, filled out multiple apps, faxed and emailed all the docs, and had his credit pulled dozens of times (they only give you two weeks of pulls before you get dinged, so do all your shopping and apps at once kids). Now he has a 510 FICO, and is upside down in the loan with 125% LTV and four months late payments because he did not know what a Recast meant – he thought he had that Teaser Rate locked for four more years. He thought he could keep paying the Neg Am until he could figure out exactly what he had gotten himself into, and how to get out of it.
But all of a sudden, he did not have 4 choices of payment any more. Or a low interest rate. His payment more than tripled overnight, and the lender that talked him into the loan either went out of business or rewrote the underwriting criteria so prohibitively they can not qualify hpoor Joe.
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Then Knute Rife said:
Comment:
The problem with getting involved is that we’ve already dismantled most of our mechanisms for involvement. We’ve replaced the extended family with the nuclear family, the front porch with the living room, Little League with Xbox, friends with therapists. We’ve raised the last two generations in increasing isolation; re-engagement will be difficult; and in many instances impossible. And the Millennium Generation folks who think they have replaced real interaction with virtual interaction are only showing how sad and dysfunctional our society is.
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My Reply: Very well put. I have often remarked on the demise of the front porch to friends
Hello,
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Thanks so much Joseph. I read your site and it sounds like you are the one who is making an impact…Keep up the wonderful work you do, and come back often!