North Carolina Family Loses Home To Foreclosure Due To Steep Decrease In Disability Benefits Attributed To Payment Error

In Davidson County, North Carolina, The Dispatch reports on the story of a local family who lost their home to foreclosure. Unlike those who lost homes through predatory loans, the family's loss has been attributed to a cut in their disability benefits that equated to a loss of half their income, leaving them unable to afford their mortgage payments. Social Security, claiming that it had overpaid benefits to the family by $8,000, abruptly cut the benefits until the amount was recouped. Attempts by the homeowner to work out an arrangement to reduce the future benefits in a way to allow them to repay the overpayment while allowing them to continue making the mortgage payments on their home failed.

For the story, see Forced out of home, family still asks why.