I am a victim of the mortgage meltdown.  I was also laid off and collecting unemployment after being employed in the industry for 15 years.  I cannot sell or refinance my home, because it has dropped in value to the point where I would have to come out of pocket to complete the sale.  Out of pocket with money that doesn’t exist, in order to stop paying a sizable monthly mortgage payment with my unemployment supplemented by my savings when the industry started to decline two years ago and cut my income by nearly 80%. 

My twins were born in 1993.  We had made a choice for me to stay home for a few years.  Instead, we divorced in the late 90s due to some serious issues.  I was forced to go back to work in order to support my now 3 children and keep our house.  I started working in the mortgage industry.  While I wasn’t making a fortune, I was always made sure the car and mortgage were paid on time.  Unfortunately, other bills did get behind, tarnishing my credit for a while.  In 2001, I was offered a position as a wholesale account AE and an opportunity to move to Boston.  For many reasons, I took that opportunity.  Mostly it was a chance to leave the past behind and start over.  I borrowed $25,000 from my best friend with a promise to pay it back – one day.  I leased out my house, found a house to rent in Boston and moved.  

Things were difficult financially in the beginning, as the cost of living was significantly more.  In addition, I had no relationships – so had to build it all from scratch.  Within a year I was making low six figures.  I started investing the maximum in my 401K and took all the money that exceeded that and my monthly bills to settle out all of the debts that went bad the previous few years.  I worked diligently to make sure that my credit could recover; however, it took much longer than it would have it I had just filed bankruptcy.  That hurts, because I did pay them – I didn’t walk away – but I was punished for that mistake for years.  The third year I sold my other home and bought the home I was living in, a fixed rate loan but with about 1 pt higher than the best rate available at the time. 

Things were going great.  I bought a vacation home near the ocean, a fixer upper – and a friend who was a handyman (and was going through a divorce) lived in it and did the work in exchange for living there.  I paid cash for all of the improvements.

But, some things were not going great.  My brother had been diagnosed with an inoperable brain tumor in 2004 (having been on disability for the previous year for a newly diagnosed diabetes).  Between 2003 and 2005, I loaned him in excess of $45,000.00 to help him pay his own mortgage.  He promised me that he had me listed in his will and life insurance.  He knew that was money I had been putting aside for my children’s college.  I didn’t ask him to prove it – I believed him.  In 2005 he died.  Two days before his death, his ex-wife and son’s mother told me she was aware of this money and would make sure I got it back when she was paid the life insurance for his/her son.  I believed her … but then never heard from her again.  I only received a nasty letter.   I wasn’t able to collect the money through the estate, as she filed a large claim against the estate for child support while he was on disability (and I was helping him).  

I felt betrayed by him.  I felt that betrayed by her, because I couldn’t understand why she would’ve told me she knew and then acted like I was the anti-christ.  I’ve not seen my nephew since his death.  These events led me to fall into a depression.  I didn’t even know this was what was going on, as I’d never in my life experienced depression. 

While all of this was going on in the background, the mortgage industry was caving in.  This added to my depression, as things were so slow that I didn’t have the normal client interaction to keep me pumped.  Every day was feeling like a failure.  I grew more and more depressed.  My income fell 80% and I started supporting myself on my savings (nearly two years).   I listed my second home for sale, but the foreclosures in the areas started and the value dropped – below the amount I owe on the house.  I’ve not been able to sell it.  I’ve since rented it out, which covers a significant amount of the mortgage.  Our regular home also dropped in value – but significantly more.  Some $150K.  Yes, I’m also upside down.

The industry finally got my company late last year.  I was laid off in late November.  I've also had extraordinary medical bills in the last year due to a surgery for my daughter that the insurance company is denying (and I keep appealing).  I've been looking for a job for several months now and am registered with 5 recruiters, as well as my own online searching. I'm one mortgage payment away from exhausting my 401K once valued at $120K.

I did everything I could the last two years since the market started crumbling, in an attempt to make sure this didn't happen.  But I failed.  My unemployment ended on Sunday and our President is going to veto any bill to extend it. My child support amounts to $700.00 per month. My monthly need is about $6K/month to support my household, utilities, food, etc. -- and that's eating hotdogs.

I came very far after my divorce -- and now I'm falling hard and fast.  I just don’t know what to do.