Homeowners over the age of 50 are the most impacted by foreclosures, according to the New York Times. And of those, widows are particularly at risk thanks to a paperwork flaw that keeps them from modifying the loan previously held in their husband’s name. From Mortgage Catch Pushes Widows Into Foreclosures,

At first glance, the issue seems little more than a logistical headache. To stay in the home, the surviving spouse needs to take over the mortgage. But to do that, most banks require that the borrower assuming the mortgage be up-to-date on payments. Housing advocates say that their clients, especially if one spouse experienced a prolonged illness, often find they are already thousands of dollars behind.

“Surviving spouses are trapped without a clear way to preserve their home,” said Arabelle Malinis, a lawyer at Housing and Economic Rights Advocates in California.

Given the ages of my husband and me, this is pretty scary stuff.

Several cities across the nation have an unfortunate trophy sitting on their mantle – the title of a city with the most homes in foreclosure.  Unfortunate sellers in these towns won’t have to just compete in a poor market, but also with homes at rock bottom prices because they sit empty.  From NBC News.com,

Places hard hit by the housing downturn also experienced higher levels of unemployment. As of May 2012, all but one of the metro areas on this list had an unemployment rate higher than the 8.2 percent national rate. Three of the metropolitan areas on the list had an unemployment rate above 10 percent. The high unemployment in these areas is serving as a barrier to housing recovery. Home prices in all 10 of these metro areas are expected to drop in 2012, with home prices in all but one of the metro areas expected to fall more than the U.S. decline of just under 1 percent this year.

If you live in Riverside-San Bernardino, California; Atlanta, Georgia; Sacramento, California; Phoenix, Arizona; or Las Vegas, Nevada, it may be awhile before you can sell.

Any time I go into a foreclosed home, I can’t help but wonder about its story. What were the people like who lived there before? Were they happy? Why did they leave?  Agent Linda Murphy of Reno, Nevada had one of these questions answered at a recent showing,

“Hope You Will Love This Home as Much as We Did”
No, this was not the parting sentiment from seller to buyer at a happy closing. It was wistfully painted above the front door, surrounded by an artistic vine of leaves and flowers, of a bank-owned property I showed to some first-time buyers. We didn’t notice it until we were leaving, where it stopped us dead in our tracks. No one spoke for a long time as we resumed our places in the car for the ride to the next potential home.

It is so true that we all sometimes lead lives of quiet desperation.

I akin this to sending a collection notice – spending 44 cents, plus paper and staff time – to collect a 20 cent overdue amount.  A guy hit the “0” button on his phone instead of the “8” and now may lose his home.  From ABC News.com,

He said he was advised to send a check for 80 cents to try to resolve the issue, but both that check and his second payment were returned to him in the mail.

A few days before Christmas, he said he received a letter that read: “Your loan is not eligible for the Fannie Mae modification program because you did not make all the required trial period plan payments by the end of the trial period.”

Mudie said he was alarmed that the letter said loan modification was not an option anymore and the only option was a short sale.

The bank has promised to clear up the confusion. Hopefully they will.