Faces of Foreclosure

ROVIDENCE, R.I. (WPRI) -- In Providence and throughout the country people are losing their homes in record numbers. It's the American dream, gone bust.

Until recently, it was easy to get home loans but many are now re-setting at higher rates and people just can't keep up.

Eyewitness News Reporter Susan Hogan introduces you to the Faces of Foreclosure.

They're not looking for sympathy. They just want you to know that they tried. For some people facing foreclosure, it's about bad timing, bad luck and they admit, bad judgment.

One knock of the gavel, a low bid, sold!  On every corner, on any given street, a house in Rhode Island is up for auction.       

On Roberta Avenue in Woonsocket the McWhinney family just minutes ago got a call the auction of their home was delayed 30 days

Jackie McWhinney says, "I feel like a roller coaster."

9 years ago, they were living in subsidized housing but saved enough money to buy this house, their first home.  But then financial hardship plagued this family for years...

McWhinney says, "We're workers, we're not trouble makers, but you're punished for hardship."

The McWhinneys refinanced 7 times over 5 years.

Susan asks, "Now, how much did you pay for this home?"

McWhinney answers, "$86,000"

Susan asks, "How much do you owe on it?"

McWhinney answers, "$258,000."

Now, their adjustable rate mortgage is set to kick in, increasing their payments $300 a month.

Susan asks, "Now, you signed the papers, do you take some responsibility?"

McWhinney answers, "Yes, I do, I'm a mom trying to save my home"

But the effort didn't pay off. The first of two foreclosure letters arrived just 2 weeks before Christmas.

McWhinney says, "When I look at my kids, I say, why? It's just over, we went up and we're going down."

The McWhinneys are now on the waiting list to return to subsidized housing.

But there's another face of foreclosure many people don't know about. They're the renters who are being forced out of their homes to no fault of their own.

Gina Cavahlo says, "There was a note in my mailbox"

Gina and her 3 year old daughter are packing up and moving out.  That note in her mailbox?  A notice from the bank, the house she was renting was going into foreclosure; she had two weeks to get out.

Cavahlo says, "I had no notice, I had nothing, and I have gave him the rent just before I got that notice."

What makes Gina's story even worse, she moved here a year ago after fire destroyed the home she was living in.  When she found this apartment, she thought things were looking up.

Cavahlo says, "It was cozy, and quiet, better than where I was living before."

Gina was able to buy a little time with her landlord but today time ran out and she had to move.

Gina did find another apartment. And she and her daughter are settling in, for what they hope is a long time. 

In the meantime, the McWhinneys got some encouraging news. Their lender is trying to rework their mortgage to a lower rate.

According to RealtyTrac there were 1,838 foreclosures in Rhode Island in 2007. That's up more than 353% from the 405 foreclosures they tracked in Rhode Island in 2006.

Article Source http://www.wpri.com/Global/story.asp?S=7905459&nav=F2DO