In the hopes of saving her home, the professional hairstylist did the right thing, according to housing counselors. She called her mortgage company, said she had a job, and was willing to do almost anything to modify her loan and cut her monthly payments.
But eight months later, the former Christian missionary is still trying to navigate the bureaucracy set up by Chase Home Finance LLC. Debt collectors now call her daily, she said, and the loan-modification process seems to be only putting her deeper in debt.
"This help for homeowners has left me helpless," said Grevin, 35, a stylist at Jacaranda on Maryland Avenue. "You shouldn't have to be a mortgage specialist to own a home."
Grevin - one of thousands of homeowners facing the nightmare of foreclosure in Anne Arundel County - is not alone in her frustration.
Every day last year lenders notified on average eight county families from Churchton to Brooklyn Park that their homes were destined for the auction block. And officials with the state and mortgage companies agreed last week many of them ran into similar problems while trying to save their homes.
"It is not an easy process. ... It can be long and drawn out," said Clarence J. Snuggs, the deputy secretary of state Housing and Community Development, acknowledging the patchwork of private and government programs instituted to combat the ongoing foreclosure crisis are not perfect. "You may have to push, but it can work."
Michael Fusco, a spokesman for Chase, urged borrowers to bear with them. He said Chase doubled its staff of counselors from 2,500 to 5,000 in the past year in an effort to handle the sheer volume of pending foreclosures and modification requests.
Snuggs said counselors with the state's HOPE Network have helped more than 10,200 people save their homes since the program's inception in 2007. Fusco added that Chase offered more than 568,000 mortgage modifications last year. More than 83,000 modifications have become permanent.
"For those families the process had a happy ending," said Snuggs, noting that lenders are much more willing to work with borrowers than they were just two years ago, when most thought the federal government would buy the bad loans outright and save their investment.
'Easy to buy'
Grevin's story started in 2004 when she moved from Kansas City to Annapolis to be closer to her brother.
She didn't originally plan on buying her one-bedroom condo off Forest Drive on Sandstone Court. She'd always rented before, an extension of the almost nomadic life she lived growing up as a missionary in Japan, Singapore and Philippines.
But she wanted to set down roots and everyone she talked to - from clients at the salon to family members - told her the time was right to own a home.
"I didn't really know what I was doing," Grevin said, saying she just started calling around and quickly found herself paying $172,000 for a condo. "I wanted to get the ball rolling and I just kept getting approved and getting approved. ... They made it kind of easy to buy."
While speeding through the approval process, Grevin and her mortgage brokers glossed over one little problem: She really couldn't afford the condo.
Grevin said she lied about her annual salary on her mortgage application, but she blames her brokers for that admitted impropriety.
"Every person I talked to said, 'We'll just say you make more,' " she said, recalling how each broker she spoke to told her not to worry, that "everyone does it."
In an attempt to cut her original monthly payment of $1,350 - and borrow $20,000 against the rising value of her condo - Grevin refinanced her home twice in 2005 and 2006. She now pays about $1,250 a month, but her mortgage has swelled to $222,000, she said.
Over the past four years, Grevin, who makes between $30,000 and $40,000 a year depending on tips, has continued to struggle with her monthly payments. When she fell two months behind last year, she decided to call her mortgage company and try again to cut her monthly bill.
At first, it seemed to work. She entered into a trial program with Washington Mutual while the company reviewed her file and determined if a small reduction would make a significant difference in her ability to pay.
Even though she was two months behind, Washington Mutual ordered her to pay only $593.82 a month for the next six months.
During that time, Grevin hounded Washington Mutual, which was purchased partway through the process by Chase Home Finance. When they demanded more information or duplicate faxes, she responded almost immediately, she said.
But on Nov. 12, Chase rejected her, saying she didn't make enough money. And five days later, the company sent her a bill for $7,086.87.
According to the "Notice of Collection Activity," the total represented all of the money she didn't pay under the trial program, plus $330 in late charges.
The bill shocked Grevin, who could find no fine print in her trial-plan agreement explaining she would have to pay the money back right away if the modification didn't work out.
With collection agencies calling twice a day, though, Grevin said she didn't know what to do. She liquidated some stocks and cut the bill to about $5,300, but the calls kept coming.
Grevin said it wasn't until a couple weeks ago when she was able to talk to a supervisor at Chase that she was able to sort out some of her problems. The supervisor said Chase rejected her because they thought she earned only $2,000 last year.
When she explained that she earned more than $30,000, Chase reopened her file and placed her back in the running for a modification.
"I don't think this is the answer. I don't know what is, but it is buying me more time," Grevin said of the modification process.
Fusco, the Chase spokesman, said Thursday they have received Grevin's new salary information and are working with her to modify her loan.
He declined to comment further on Grevin's specific case, but he noted in general a homeowner should not receive a bill if they are rejected from a trial-modification plan.
When asked about why Grevin received a bill, he responded:
"We are working with her," Fusco said.
Crisis continues
While Grevin may still emerge from the foreclosure crisis with her condo, the overall crisis is showing few signs of ending.
Lenders moved to foreclose on 3,031 homes in Anne Arundel County in 2009, up from 1,921 in 2007. Statewide they filed foreclosure notices on 43,248 homes last year, up from 18,879 in 2007.
Over the past three months, the concentration of foreclosures also has spread throughout the state. Several foreclosure hot spots popped up by the end of 2009 in northern Anne Arundel County.
"I have no way of knowing when this will settle down, when we will be back to normal so to speak," said Snuggs.
He noted that while the foreclosure crisis began in late 2006 with primarily sub-prime mortgages, and intensified in 2007 as adjustable-rate mortgages started to reset, the state is now being hit by a "third wave" of foreclosures. Many of these homeowners are victims of the current economic downturn, people who have lost their jobs or at least their overtime and can no longer afford their mortgages.
"You can't make a mortgage payment if you don't have an income," Snuggs said.
TIPS FOR AVOIDING FORECLOSURE
The Maryland Department of Housing and Community Development offers homeowners several tips to save their home from foreclosure:
• Contact your lender: Banks do not want to take your home. Contact your lender as soon as you start to have problems making your monthly mortgage payment. Lenders offer borrowers several programs to help modify loans.
• Meet with a nonprofit housing counselor: Maryland’s HOPE Initiative offers homeowners free and confidential foreclosure prevention assistance. Call the Maryland HOPE Hotline at 1-877-462-7555.
• Avoid foreclosure "rescue" scams: Do not work with counselors or real estate agents advertising foreclosure help for a fee. Do not sign any legal documents without first getting objective, third-party legal advice. If you feel you have been the victim of a scam, call the state’s Department of Labor, Licensing & Regulation at 1-888-784-0136
• Try to refinance before your rate goes up: The Maryland Department of Housing and Community Development offers the Lifeline Refinance Program to homeowners who are not behind on their payments but who are facing an interest rate hike.
• Try to refinance before you get far behind: The department’s Homesaver Refinance Program is aimed at homeowners who have missed a few payments, but who can afford a slightly reduced mortgage payment. The department’s Bridge to HOPE program is aimed at homeowners who are working with a counselor or lender, but who need a 0-percent loan while the specifics are worked out.
• Cut back on spending and save money: Review your finances and cut spending where you can to show your lender you are serious about saving your home. If you enter into a trial program to modify your loan, don’t spend the money you are saving on your mortgage on new electronics, furniture, etc.
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Mr. Forrest - 2010-02-04 14:20:36
I don't think we disagree with each other. I also think this is what Ms. Grevin and the article is trying to say. Buyer beware. It is a shame we can not rely on Mortgage Lenders to do their jobs honestly and ethically. I would lose mine if I didn't. I still think it takes a lot courage for Ms. Grevin to share her story, which many are facing right now. I have not spoken to her in a while but find her placing her face to this growing problem a courageous act. I agree too many times people try to live beyond their means and we live in a society that enables that behaviour. That said being judgemental never solves anything, suggesting solutions however generally does. I agree with your suggestion that she should work with the Mortage Comapny.
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Jessica Hause - Annapolis, MD - Karma: Excellent
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Ms. Hause - 2010-02-04 13:13:23
Is it the brokers fault she purchase the condo. A realestate broker is like a use car salesman, he will find a way to get you in it. The thing is you must know what you can and cant afford. This is where good friends like you come in and say that doesnt sound right stacy. There are sharks everywhere trying take your money. My suggestion is to continue to work with the mortgage company but dont add more onto the loan. Iam sure the mortgage company would rather have your mortgage payment then a foreclosure. In the future get some advice from a money wise friend.
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Anthony Forrest - crownsville, MD - Karma: Excellent
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seriously - 2010-02-03 15:31:04
If she did not buy all the furniture ,tv and stereo,where did it come from? Oh and I would think her nice car was repoped long before the condo,give or take 3 mths on the car but about a year on the condo,maybe more.
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jim pearson - seaford, de - Karma: Terrible
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Seriously? - 2010-02-03 11:47:10
First of all I would like to say that I think it took a lot of courage for Ms. Grevin to share her story. There are plenty of people here in this area in the same boat she is. While we do need to live in a buyer beware society and keep that in mind in many situations such as this, we should be able to trust that those that are subject matter experts in things such as Mortgages are giving us good information. Too many times there are people just out for the Dollar and not to advise and help others correctly. For those on here to judge what furniture she has or what kind of car she drives is ridiculous. I happen to have known Ms. Grevin. She lives a sensible life, drives a very reasonable car and gives her time away faithfully to others. She does not live frivolously and did not go out and buy all new things for her place when she bought it. I am sure she feels she learned a very hard lesson though this experience. Much like many in this area have during these tough times. I find many of the comments on here to be caddy at best. They do not provide solutions.
So Stacy thanks for sharing your story, I hope it helps others some how. As I am sure that was your intention.
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Jessica Hause - Annapolis, MD - Karma: Excellent
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foreclosure - 2010-02-03 09:27:54
ask her what kind of car she drives? BMW.M/B,Audi, I'am sure it is not an Altima.feel sorry? not at all!
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jim pearson - seaford, de - Karma: Terrible
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copper - 2010-02-02 18:40:15
what copper? all cpvc,pvc or abs all plastic with no value!!!!!!
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jim pearson - seaford, de - Karma: Terrible
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copper plumbing - 2010-02-02 18:18:02
Dont mean to laugh but thats funny.
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Anthony Forrest - crownsville, MD - Karma: Excellent
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Walk Away - 2010-02-01 17:03:01
Your credit is already screwed. Even with a mortgage mod you probably cannot afford to own this condo that you shouldn't have gotten into in the first place.
Stick it to the bank and walk away. Take all of the copper plumbing with you for some quick cash.
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Tyler Durden - Annapolis, MD - Karma: Excellent
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foreclosure - 2010-02-01 15:34:19
if you look at the picture,it looks like she also went shopping on tv and furniture.Also everyone thought the value was going to skyrocket,thats why I sold my house in 2005 for 350k the buyer also took out 3 mtgs and guess what? the house is worth about 275 now.Why does everyone think their salary is going to double.Yes we can look at the lenders but why do people get a 150k loan on 100k property.NOT SMART!
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jim pearson - seaford, de - Karma: Terrible
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ashame - 2010-02-01 14:40:55
A very unsympathetic group commenting here. I cant bring myself to find Ms Grevin at complete fault here. It is ALSO the responsibility of the lending company to be honest with its client. That is exactly what got this nationwide MESS started.
This company led Ms Grevin into a false sense of security by telling her "everyone lies about their income." She relied on the guidance of these "professionals" to find a program that would suit her current situation. They failed her tremendously... and have failed thousands of other homeowners in these greedy, self serving tactics. The point is that they should have told her she was reaching beyond her means.
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Mark M - , - Karma: Excellent
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foreclosure - 2010-02-01 13:38:03
lets's see can't pay mortgage and I am sure she could not pay the condo fee either.So she lied now the truth hurts,thats what happens when you lie ,it comes back to haunt you at some point.Did she get a job? NO, sorry I am sure she rented a booth!she also got caught up in all the refinance B.S.
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jim pearson - seaford, de - Karma: Terrible
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Overstated Income??? - 2010-02-01 10:32:35
How does one do this? When I purchased my home. I had to provide W-2s, bank statements, pay stubs, tax returns, and name of my creditors. The mortgage company then crunched the numbers for debt ratio, mortgage/pay check ratio, etc.
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Rick M - Laurel, Md - Karma: Excellent
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Advice - 2010-02-01 09:29:00
Perhaps in the several tips to save their home from foreclosure you should list: Don't lie on your application. And put that first, in bold. She has no one to blame but herself. And it costs money to be stupid.
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Sally Abbott - Annapolis, MD - Karma: Excellent
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grammer check - 2010-02-01 01:23:00
Please make that over stated, not over started... Sorry
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Jerry K - Crofton, - Karma: Neutral
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No Sorry, just But.... - 2010-02-01 00:21:14
I wish her the best but cannot feel sorry for her. She over started her income to buy a house she could not afford and now she still cannot afford it. There are housing options in the area that are cheaper than Annapolis.
I agree with Kirk. It is always a good idea to be able to afford your rent.
Has she considered a part-time job or room mate?
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Jerry K - Crofton, - Karma: Neutral
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Home - 2010-01-31 15:05:25
It's rough being on commission and even rougher coming up with that kind of money every month. What happened to 30,000. condo's in Annapolis. Donlt they have such a thing anymore.
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Ben Ben - Shadyside, Md - Karma: Neutral
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Also feel sorry, but..... - 2010-01-31 09:32:51
Overstating income on a mortgage application is never a good idea, regardless of the economy.
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Kirk Gunn - Arnold, MD - Karma: Excellent
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wow....... - 2010-01-31 08:25:42
just way too much personal information on this poor girl in here....i feel very sorry for her and i think chase should be ashamed of themselves that she has to go through this....she's a decent person trying....but this article gives way too many details about her...she just needs honest help.....
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stanley davis - mayo, md - Karma: Terrible
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