Virginia Widow Facing Loss Of Home After Subprime Surprise

In Virginia, C-Ville Weekly reports on the story of a 78 year old widow who reportedly was led to believe that she was being given a fixed rate mortgage on her home, but instead, was given an adjustable rate, subprime loan and now faces the loss of her home of 27 years. Kathleen Caldwell, an attorney with Legal Aid Justice Center in Charlottesville, Virginia and familiar with the woman's case is quoted:

• "The good faith estimate that was sent to her was for a 30-year, fixed-rate mortgage. Later, the closing attorney brought a stack of papers for her to sign that were different from those that had been previewed for her."

Reportedly, upon receiving her first monthly statement, the widow discovered that she'd taken out not one, but two mortgages, one of which was an adjustable rate mortgage and the other a high rate balloon mortgage. Upon the reset of the interest rate on the ARM loan, she will effectively be priced out of her home, according to the story. For more, see Virginia mortgage foreclosures increase (Metro area has nation's worst racial discrepancy in high-cost lending).