A WIDOW said she had to file for bankruptcy to stop her home being sold at auction.
Carol Haynes, 80, said her problems began after an automatic change occurred when her husband Ed died.
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Haynes, of Florence, Kentucky, about 10 miles south of Cincinnati, Ohio, said her home mortgage payments were affected when her husband died.
She explained that his bank account was frozen after he passed away in 2022 following a battle with coronavirus.
This was a problem for their property as the mortgage payments came from their account.
Automatic payments on the two-bedroom home were automatically stopped, but Haynes said she and her stepdaughter Tiffany were unaware of this, according to the CBS affiliate. WKRC.
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“I thought she was fine and didn’t want to bother me, so it was just a little miscommunication,” Tiffany said.
This led the bank to begin foreclosure proceedings on the home, despite Haynes having the money to pay his fees.
Tiffany said she contacted the bank, explained the situation and reached an agreement to keep the house in Haynes’ possession.
“So this would bring the loan up to date, ending the arrears, and we would just make the payments,” Tiffany said.
Haynes and her stepdaughter said their ordeal didn’t end there, as the bank sold their loan to a new mortgage holder during the initial foreclosure process.
This owner was unaware of the agreement between Tiffany and the bank and placed the house back into foreclosure and put it up for sale at auction.
Tiffany said she sent proof of the agreement between Haynes and the bank to the new mortgage holders, but that didn’t stop the process and she received a letter saying the sale would take place on May 23.
The man in charge of conducting the sale, Boone County Master Commissioner Larry Dillon, revealed that one of the only ways the house could be taken off the auction block was for Haynes to declare bankruptcy.
He said his hands were tied in this situation as he couldn’t stop the sale without it happening, according to WKRC.
Haynes filed for bankruptcy before the auction and was able to keep his property.
What does it mean for a house to be placed in foreclosure
Foreclosures can happen when lenders take control of a property after borrowers have failed to make their payments.
Homeowners or borrowers will receive a Notice of Default from their lender, triggering the foreclosure process.
Those in HOA communities may also find their homes foreclosed by their HOA for late fees, meaning that even if you continue your mortgage payments, you could still lose your home.
Before foreclosure, an HOA will place a lien on your property, which will allow it to be auctioned off to recover unpaid funds.
The property’s sales price can often be much less than it is worth, as it only needs to be enough to cover debts owed to the HOA or lender and is sold at auction to the highest bidder.
She explained why she was so adamant about not losing the home where she lived with her late husband.
“I want to be close to him. You know I can feel it here,” she said.
“I think if I left here I wouldn’t live long.
“He wouldn’t want me to be sad, you know, or have to leave, he always looked out for me.”
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Haynes wasn’t the only homeowner to turn to bankruptcy to save her property, the US Sun previously reported.
Miesha Ross said she received an eviction notice in 2017 despite paying her mortgage.
Ross said she made some late HOA payments and faced other debt problems, so she filed for bankruptcy.
The homeowner argued that even though her debts were late, she ended up making payments to the HOA.
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This story originally appeared on The-sun.com read the full story
