Tag Archives: modified loan

Maine program tries to halt foreclosure before it’s too late | Bangor Daily News

BANGOR, Maine — Abiel and Bettyjo Martinez bought a home in Etna in 2005 with an adjustable rate mortgage, the only loan they were eligible for.

In two years, their interest rate ballooned to 12 percent and their monthly payment nearly doubled from $900 to $1,700.

They scraped by for a while until Abiel Martinez lost his job and watched several months pass before he could collect unemployment. Then his wife lost her job. So they went back to their lender to modify their loan.

“They told us we could modify, but we had to pay $3,800 to start that process,” he said. “How can we pay $3,800 if we can’t afford the mortgage?”

The mortgage company had no choice but to start foreclosure proceedings. The Martinezes and their three children were in danger of being forced from their home.

Click on the link for the rest of today’s story by Eric Russell in the Bangor Daily News.

Information about the state’s foreclosure diversion program is available at http://www.courts.state.me.us/court_info/services/foreclosure/index.html.

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