A tale of two foreclosures

Isidra and Wenceslao Martinez thought that they realized the American Dream when they bought their house on Lyndale St. at a good price in 1991. But, in February of 2009, when both lost their jobs at the same factory, everything started to change.

The Martinez family talked to authorities at Chase Bank to receive a new payment plan. “My friends told me that the bank was going to help us,” remembers Isidra. The Chase representative recommended that the Martinezes not pay their mortgage for three months in order to qualify to negotiate a new agreement between both parties. Later the bank proposed monthly payments of $1,933 during three months but asked for a $14,014 payment for the fourth month. Isidra and Wenceslao were able to pay the first three but failed to pay the fourth one. Another agreement was re-negotiated with the same result: the Martinezes paid three months but were surprised-and failed to pay- when a balloon payment of $15,336 was required in June.

The Martinezes then paid $1,500 to a law office, which later told them that the problem had no solution. “It was a scam, they kept the money and told me that the house was already sold,” explains Isidra. Thinking that all hope was lost, Isidra and Wenceslao talked to Marcelo Ferrer, LSNA’s Director of Family Supports, who helped them create a legal plan with a lawyer. The case has been extended until December in the courts, where the future of the property will be decided.

“For people in foreclosure or who are experiencing difficulty with their mortgage it's imperative that they call us at LSNA, and not pay a lawyer or anyone for help. We can guide you through the process,” said Ferrer, who works with LSNA’s outreach team to inform homeowners and renters about their rights. Adela Gonzalez, who saved her house with the help of Liberty Bank for Savings and LSNA, also believes that homeowners do not have the information to face the banks or lawyers who try to take their homes. “I was going into foreclosure,” said Mrs. Gonzalez. “They helped me at LSNA, my interest went down to 3.9% and now I’m starting to get on my feet again.”