Widow Faces Foreclosure As Lender Claims Coverage On Husband's Mtg. Life Policy Expired, Despite Continued Acceptance Of Premiums

In Tallahasse, Florida, the Tallahassee Democrat reports:

• Eight months after her husband Ralph's death, retiree Joyce Aiello is facing the loss of the couple's Tallahassee home — something they had taken deliberate steps to avoid. [...] Vanderbilt Mortgage and Finance Inc. of Maryville, Tenn., has the loan on the couple's double-wide mobile home. In checking with the company, [Joyce] found out that the 10-year term life insurance policy on Ralph had reached its time limit. She wasn't actually covered, even though the couple had been paying the $11.25 premium each month since 1997.

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• Vanderbilt continued, however, to take her monthly insurance premium of $11.25 for a year and four months after the term had ended. They said they applied the money to the principal balance on the loan, Joyce said she was told by the company.

For more, see Tallahassee woman fighting to keep her home.

For story update, see Facing foreclosure, Tallahassee retiree able to keep home for holidays.