Having just said "shit happens" in another thread, here's another example in a completely different context.

As I understand her story, she couldn't qualify for the mortgage even in those permissive times, so her *mother* took out the mortgage. Then her mother died of cancer. Now that is truly lousy luck.

On the other hand, if this is really the way the mortgage is, then "refinancing" is nonsense, because it isn't her mortgage to refinance. Unless her mother was wealthy, and established a trust (obviously not the case), the house *must* be sold or transferred - either way requireing a completely new loan.

She has been paying money on a mortgage that she does not owe; a mortgage that legally can no longer exist. I understand that, with all the emotional turmoil, one sometimes makes poor decisions. However, at this point, it's time to involve an attorney: if the bank forecloses and takes a loss, they may just want to know what happened to the rest of her mother's estate.

See when I saw the headline I thought this was going to be about the banks, or maybe your amazingly terrible car industry.

But yeah, you make your bed and you have to lie in it, such is the nature of the world. (Hence why I get right pissed off about the banks)

You friendly neighbourhood Brit.

OK, she's a writer and she doesn't know the difference between principle and principal?

Apparently, the principle of paying off the principal on her loan hasn't settled into her head yet. Oh, yeah, I forgot. It's not her loan.

Grrrrrr. Think I'll go find me a pirate to give me a ride to work....

> Author Francesca Lia Block blogs that she may end up losing her home.

As I read it, she never had a home.

Her mom had a house that she'd bought.

The bank had claim to the house if the mother ever defaulted or died.

...and all Francesca Lia Block had was a count of mortgage fraud hanging over her head this whole time (for which she's now helpfully assisted the prosecution by admitting it all in her blog).

WT*?

Am I missing something?

No, Amy, it's not silly. I have compassion for those who are in a hurry, tired, and under deadline stress. (Translated, that means I have noticed your swaps, and I understand. You'll notice I have NEVER commented on them, nor will I, ever.)

It's easy to make mistakes like that, and I have certainly made my share.

Nevertheless, she made the same mistake more than once, with a word that isn't just a throwaway, so it wasn't just a little boo-boo. It was because she didn't know the difference, and didn't care enough to look it up. I think she has a responsibility as a professional writer to care enough to find out, because it affects her credibility with her audience. This is not a "too/to" inadvertent swap.

But of course, that's just my opinion.

So, after reading the blog post, I see that she actually had taken out two loans, one an a very high interest rate even for the time. It's clear that she stretched her finances to the absolute breaking point in order to grab the brass ring she wanted. She stretched it so far that it was very unlikely that she wasn't going to get in trouble; her strategy relied on everything being absolutely perfect financially. Yes, she's had some bad breaks, but you're supposed to have savings for contingencies like that. Her financial naivete is almost childlike.

She does sort of have a point about the banks, who have been given billions. But it has to stop somewhere.

First, this woman is a moron to have goten an interest only loan

Second, this woman is a moron for daring to complaign about bank bailouts in on breath and the complaign about the lack of her pesronal bailout

Third, this woman is a moron, if you can not qualify for a loan dont get a relivie to sign for you.

Depending on her jurisdications laws she might face criminal charges, is she even on the deed? What did he mothers will say about the dispensation of assets? Was there eve a will at all? Does she have siblings/relitives who can contest her claim to her mothers esate?

And finally supposing she does pay off the laon in its entierty - SHE STILL ISNT THE OWNER - her dead mother is.

Two things might help her,
1 the fact that after reciveing proof of the death of her mother, the bank didnt immediatly transfer the loan
2 she has been paying the property taxes, assuming she paid them in her name and not her mothers she can use years of property tax payments as leverage to claim the house as abandoned by it tennants and claim ownership for herself - if the bank isnt paying attention she might get the house without having to pay them another cent.

But that might just be a oddity of arizona law for all I know

Either way she need to hire a lawyer

Getting an interest-only loan on a house is nuts. You get all the responsibilities of a homeowner without actually owning the home.

But, but... predatory lenders... Evil bankers... robo-signings. Surely someone else is to blame. :)

"And finally supposing she does pay off the laon in its entierty - SHE STILL ISNT THE OWNER - her dead mother is."

I don't get that bit either. Did her mom leave a will? Has the property gone through probate?

Back when this was starting to break apart -- I was working for a "small" bank. We would do the interest only type loans and similar products. They were done only for the customers that were essentially business owners. They were pass-through mortgages. We serviced them, but the profit/loss belonged to another bank. They were less than 1% of our monthly loan closings.

We as a bank, and I in the IT, programmed for them, but didn't really approve of them. Four to six years down the bank has shrank substantially, but is still operational. The OTS is still chewing on them for being essentially financially sound and not doing as much fractional financing as they could.

The latest round of it is wanting the bank to invest $x00K in IT systems that are fucntional and secure.

"And finally supposing she does pay off the laon in its entierty - SHE STILL ISNT THE OWNER - her dead mother is."

I don't get that bit either. Did her mom leave a will? Has the property gone through probate?

Posted by: Cousin Dave

Well according to her she is still makeing the payments in her mothers name, and the mortgage is still in her mothers name nearly a year after her death. My point was if she manages to pay off the loan before the house goes thru probate the property is still wholy part of her mothers estate and not hers which means any relatives can pop out of the wood works and claim their share of the procedes

Hee hee hee... a Brit complained about our cars. Wonderful!