I have talked to a home owner today that is in foreclosure despite having paid his mortgage on time for many months now. Sometime in mid last year he has lost his job and was not able to pay the mortgage for 2 months. He later found a job, paid back the arrears and thought everything was in order. This is, until 2 months before the mortgage was due for renewal when the bank has informed him that the mortgage will not be renewed because of the missing payments during the prior year. Unfortunately he was not able to get a new mortgage as a result of his credit score not being that great as well as a the previous year’ lower yearly income. He is now in foreclosure, what a shame. I usually explain home owners that the bank has the right to get back its money but in this case I really do not understand the bank’s approach. Why not let the owner keep on paying the mortgage? The foreclosure option is always there if they need it in the future.
What do you think?