Mortgage story to tell? Vera Johnson’s collecting them for DC

Just after opening Village Green Perennial Nursery for the season, owner Vera Johnson has a quick out-of-town trip ahead – way out of town. Eight months after her very public foreclosure fight with Bank of America, she is going to Washington, D.C. – and if you too have been through something similar, she would like to take your story along for the ride. Vera explains, “I was asked to go to D.C. to meet with the Obama Task Force next week. We have meetings scheduled with folks at DOJ, HUD, and other agencies involved in the newly created mortgage-fraud task force. We’re going to spend some time together talking about the work happening in our cities and states, AND there’s going to be a Senate Banking Committee hearing on “public and private solutions to the mortgage crisis” (ie. Principal reduction) on Wednesday 3/7 – perfectly timed for us! I was asked to collect personal stories with photos of people who are dealing with this personally.” She is representing WA-CAN (Washington Citizens Action Network) and asks, “E-mail me your story of any Fannie/Freddie nightmares. Include a family photo. By Sunday ….. vjvillagegreen7@gmail.com.” She heads out on Monday.

Wes C. Attel March 3, 2012 (9:10 am)

Here’s my story:

I bought a home with little to no money down, and instead of keeping a savings account for emergencies I bought new furniture and high-end electronics to live the American Dream. Later I took all the equity out and went on vacations and paid down my credit cards from previous sprees.

Then the economy took a turn for the worse, and the life I built using my home as a cash register imploded before me. Since I won’t be held accountable, I think I’ll join the ranks of the many rallying against Wall Street for profiting off the mortgage industry. How dare them.

Kelly March 3, 2012 (9:51 am)

Gee, Wes, it sounds like you made some bad choices…
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As a young woman with no debt, lots of savings, and a good job I bought my first home with a very low interest 5/1 ARM. It wouldn’t be accurate to call me frugal–I’m a full blooded cheapskate. When the recession hit it was only by luck that my family didn’t end up in hot water. My company laid of 1/3 of its staff and my salary was cut significantly. My (new) husband was laid off from his salaried job, which means our health care costs went up as our home value went down.
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Thank goodness we didn’t need to move to find enough work–we wouldn’t have been able to sell. Thank goodness we were able to refinance (we moved to BECU). Not all of our *equally responsible* friends and neighbors have been so lucky.
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Thank you Vera, for making your struggles public and doing so much to promote the repair of this broken system!

proudpugetridger March 3, 2012 (11:39 am)

Wes–I love it. Nice job of summarizing the situation clearly!
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Remember too, the Govt and Mortgage Companies are responsible for the financial impacts of any failed marriges. If your spouse leaves the situation and refuses to live up to the original mortgage terms he signed…no worries, it’s not your fault–Banks and Govt will cover for your overextension!

Dave March 3, 2012 (11:45 am)

How dare they speak out against predatory lending, corporate greed, unfair and traitorous business practices and a government that has been trying to destroy the middle class since the 1970s. As “real Americans” they should just shut up, accept their declining standard of living, watch Fox News and OBEY their corporate masters. Wes, its not too late, a brokered convention and you could be IN!

skeeter March 3, 2012 (2:31 pm)

The “newly created mortgage-fraud task force?”

Was Ms. Johnson the victim of mortgage fraud? My recollection is she had trouble making payments so she asked for a loan modification.

If it is now considered fraud for a lender to attempt to collect repayment, we’re in a whole lotta trouble!

WSB March 3, 2012 (3:15 pm)

The “mortgage meltdown” as it is called in some reports is more complicated than that. If you are truly interested in the background on what Vera Johnson went through, please use our search box to find the half-dozen-plus stories we wrote. To say she got the runaround was an understatement. (Or, you can find numerous stories published by other organizations. Nicole Brodeur at the Times summarized it rather simply. http://seattletimes.nwsource.com/html/nicolebrodeur/2015615416_nicole15m.html ) Meantime, “mortgage fraud” is probably an oversimplification of what the President apparently intends this task force to do. I cannot find a home page for it so far but have found a variety of reports, including one quoting him as saying its mission includes investigating “the abusive lending and packaging of risky mortgages that led to the housing crisis.”
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Added: More background on the task force:
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http://www.nytimes.com/2012/01/26/business/new-housing-task-force-takes-aim-at-wall-st.html

skeeter March 3, 2012 (4:34 pm)

I agree Ms. Johnson got the runaround. And I’m sure that banks have insufficient staffing to handle the mess. I just didn’t understand how her struggle has anything to do with a fraud task force. I’m a little defensive because I’m a happy customer of Bank of America as well as an investor.

Mike March 3, 2012 (4:41 pm)

Wow Wes, guess you should be more responsible. It’s unfortunate that people like you decided to lack the ability to do basic math. Good thing all the banks are honest, developers are honest and would never take advantage of a low interest rate to build sub-par construction, never loan money that is obviously not realistic to be repaid or never skip the country after building a sub-par condo so they can’t be sued when it starts to mold, ceilings fall down, electrical fires start, etc… and then jack up HOA dues until people foreclose… It MUST be the person that bought into the ‘American dream’ that’s at fault right?

Carnitas Tacos March 3, 2012 (4:47 pm)

Mortgage fraud and bank run-arounds aside, how exactly is all of that the bank’s problem? Is it Bank of America’s problem her marriage ended and her income went down by $140,000 a year? And on that note: if you’re making a low six-figure income and you don’t have a safety cushion, I have little sympathy for you when hard times come around.

I’m a renter who decided buying a home during the housing boom wasn’t right for me, and that I felt more secure paying an affordable rent while saving for any tough times. And I felt the sting like many others. My income went down and my employer cut our health insurance, which meant I was forced to go without or pay out of pocket (and I did).

When it comes time for me to buy a home, I can only hope interest rates are reasonable. But considering how many people I know are walking away from their mortgages and defaulting on their obligations, my fear is that banks will need to up the rates to account for the added risk. Thanks for that.

NotMe March 3, 2012 (5:20 pm)

Hey Wes… Not everyone that is in trouble did those things, but thanks for your passive aggressive input. It reminds me once again how ugly people can get in the comments section. Your post is an example of bullying, but I doubt you care. Have you every listened to anyone going through a hard time with the banks? Do you even understand why the banks are targeted by consumer groups AND your government?
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Having said that, I read the story and ended up here to ask a question. I wish I had skipped down and just asked: Vera says she was asked to go to D.C. My question is, who asked her?

dhg March 3, 2012 (5:44 pm)

happy to fill you in, skeeter.

It’s fraud when the banks are given billions of dollars of tax payer money with the agreement that they will help the home owner refinance in order to keep his house but then decide it’s better to keep the money as profit and sell the house for whatever cash they can get. To do this, they conveniently “lose” the paperwork for the requested refinance.

As for you, Wes C Attel, you’ll get a pat on the back from Rush but you are ignoring reality. The vast majority of those who are in foreclosure were not spendthrifts but people who wanted to buy a house before the prices were forever out of reach for their income. When you see the prices go up, month on month, year on year, and you want to own your own home, you jump in with what little you have. Then the bottom falls and you’re in debt for something that’ll never pay you back.

mms March 3, 2012 (5:44 pm)

We bought our hous in 2005 with no money down on a 7 year ARM with a first and second mortgage. We bought our 700 sq ft. house for $315000 and took out an additional $6000 in 2007 for new windows and fence. We had two kids in the interim and had to work less so our mortgage is now about half of our take home pay. In 2009, we tried to refinance with Bank of America, and even though it appraised for $315, they wanted us to come in with $14000. We couldn’t do it. Now our ARM change is due in September and with kindergarten costs in the fall are not sure what our payments will look like.

We would like to refinance, and don’t want to force a modification, ruin our credit or lose our house. But BAO claims the loan holder, Aurora, does not want to help people like us. All we can do is keep calling, wait until 60 days before our change date, etc.

There must be something out there to help people like us who want to refinance and are only underwater by a small amount. It’s pretty frustrating watching BAO get rich and even consider charging their customers for basic fees while we struggle.

Joey March 3, 2012 (9:21 pm)

Geez, people who live in theirs mom’s basement and have no idea what is actually happening probably have nothing better to do than make nasty uninformed comments….
Aside from that, the housing rise and collapse are certainly the fault of the hardworking people in the community who actually try to make a difference.
Who cares who invited her, she has the guts to go and do something on behalf of the thousands of homeowners who are finding themselves falling on hard times, due to our high unemployment rates, high gas prices and mortgages underwater.

Yes, definitely slap around the folks who have the guts to stand up. That is so very, very brave of you.

NotMe March 3, 2012 (10:38 pm)

Uh Joey, you may want to read my comment again. I wasn’t slapping her, I was telling Wes to step off. She says she was asked to go. I would like to know who is asking her. I am also fighting BoA, and losing the battle. I am back to being unemployed and unable to pay the mortgage. It could be that there is a consumer group working together and trying to help people.
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What are you, 16 and living in your mom’s basement? Surely, a grown man isn’t still called Joey, right?
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(See? Even I can do that passive agressive horse crap).

Mike March 3, 2012 (10:41 pm)

Those couple of haters don’t matter. You know that you are a hero to a lot of people. You are a hero to me and to your family. That is what matters. Those constipated lemmings need a good hug and a hot bath. They have nothing better to do than to spew their hatred onto a blog that is championing for an advocate of the people. You are an advocate. You knew that what was happening was wrong and you said so instead of rolling over and letting a rape happen. Our society is so used to the feeling of getting huge piles of steaming dog poop handed to them wrapped up with a shiny bow by big corporations that they forget that they can fight when they know what they smell is not apple pie. Those bullies can eat a bag of rotten cabbage and choke on their horrible lives. They weren’t loved by the cheerleaders in high school and stay bitter cause they were never the cool kid. You are the cool kid. You are a threat to their esteem because they don’t have the courage to have your level of pride. You did not ask for anything but to pay your debt. You did not walk away from your obligation.You are paying your mortgage.You are playing by their rules. Let that hating animosity be your fuel. And that is some high test accelerant. Light it up in DC Ms Johnson and show the haters what you are made of.

Joe the Plumber March 4, 2012 (6:46 am)

Get real Mike. Your post is full of the hate you are so apparently against. And to equate Ms Johnson’s poor judgement, bad luck, bad timing with a “Rape”, you diminish the real meaning of the word.

G March 4, 2012 (10:11 am)

“As for you, Wes C Attel, you’ll get a pat on the back from Rush but you are ignoring reality. The vast majority of those who are in foreclosure were not spendthrifts but people who wanted to buy a house before the prices were forever out of reach for their income. When you see the prices go up, month on month, year on year, and you want to own your own home, you jump in with what little you have. Then the bottom falls and you’re in debt for something that’ll never pay you back.”

Maybe so, but does that excuse homeowners from financial responsibility? A lot of folks jumping in on a bull market, if it collapses, do they deserve a bailout, too? Where does caveat emptor aplly here?

Housing bubbles don’t happen by themselves, and yes, homeowners who jump in ill-advisedly, become part of creating the bubble too.

Joey March 4, 2012 (10:31 am)

This has become a battleground.
This just proves the anger of society due to all the economic challenges we are facing.
Notme…I was speaking to Wes…
not that it matters.
And I far from 16, but thanks for asking.
I’m actually your mortgage paying neighbor.
You all have fun getting your hatred out into the world, I’m going back to doing something that actually matter. Something that involves kindness towards others.

Diane March 4, 2012 (5:14 pm)

komo4 tv, 5pm news, just did a great interview with Vera

bestbets March 4, 2012 (8:18 pm)

Fraud – I have seen it on my mortgage papers, and seen the deposition of the woman whose signature appears on my docs – the consequence for her and her employers and the banks and investors who supported this extensive fraud? Nothing. Last I heard they were still it because guess what? It is profitable, and there are no consequences. The banks have $$ to lobby Congress so that consumers have no protection, and no recourse, while the banks/Wall Street incur little or no penalty and in fact continue to PROFIT for their risky decisions and illegal behavior that have sent our economy into a tailspin and increased the numbers of people in poverty – this has gone on for a while (student loans excluded from bankruptcy in 2005 for instance – go Bush). I don’t have the $ to pay a lobbyist – Vera is my voice. GO VERA!

ferguson March 5, 2012 (12:54 pm)

Wes C Attel=EV

Ms. Sparkles March 5, 2012 (1:49 pm)

Both “Wes” (love the name BTW) and dhg have valid points. The blame falls to both corporate greed, and more specifically crafty accounting, and to uninformed consumers.

No the banks shouldn’t let people “qualify” for ARMs where they can barely meet the lowest payment – everyone gambling that the home value will rise and they can refi before the rate gets unaffordable. If they held their own loans insted of packaging them in obsured risk bundles and sold them off, they would have been more diligent. No the banks shouldn’t have taken the bail out money and stablized their own lending ratios when it was supposed to fund loan modifications. And No Obama shouldn’t have bailed out the banks in the first place. BUT…

You the consumer are responsible to know what you can afford to pay each month…and if your loan payments will get out of reach in 3/5/7 years – then you can’t afford it. If you gambled that the value of you home would go up, thus allowing you to refinance – then you gambled and lost and should own that. If your life situation changed dramatically and BoA (or anyone else) won’t work with you….then I am truely sorry for your plight and believe you should be eligible for modification of your interest rate or loan term.

However, regardless of the situation, I am adamantly opposed to principal reduction; if you purchased your home to – well have a home- then keep paying and eventually it will be yours. By the time it’s paid off I’m sure it will be worth what you paid for it. But if you are sad because you bought your home as an investment and now you’ll never get your money back out of it… please see my comment above about gambling. I bought less house than I can afford, less house than I wanted and am slowly making improvements; if the Obama admistration is going to start handing out “principal reductions” who will qualify for this boon? Sure I can afford my house, but shouldn’t I be rewarded for that? If I promise to spend it on home improvements will I qualify too?

natinstl March 5, 2012 (2:27 pm)

I second Ms. Sparkles, couldn’t have said it better myself. They played part of an interview with Vera on the radio this morning and she was complaining that her home was no longer worth what is was before and she was upset that the bank wouldn’t do a principle reduction. I’m sorry for her, but that’s a chance we take. We take that gamble when we buy a home and you either have to live up to your end of that part of the bargain or not. My house value hasn’t skyrocketed either, but I saved up the money for my 20% down and I meet my obligation every month like it or not. If I could no longer do that then as hard as it might be then I would have to make peace with the situation and let it go. I know that my house isn’t truly mine until that note is paid off.

Sorry, comment time is over.