Recession proof - Local tales of job loss and foreclosure prove country’s economic woes persist

[BridgeTheGap]

James Hoover knew he was behind on payments, but seeing the sheriff in his driveway with foreclosure papers was still a shock. After all, he thought he had a deal with the bank.

During the heady days of the housing bubble, a broker called Hoover promising huge savings if he refinanced his home loan. The offer seemed too good to refuse, and Hoover converted his fixed-rate loan to an adjustable-rate mortgage. The broker breezily assured him he could refinance again before the payments spiraled out of control.

But that was before the Great Recession. By 2008, the interest rate on Hoover’s mortgage was climbing into the stratosphere, and the thought of refinancing was laughable.

Worse, Hoover lost most of his income as his business installing hardwood floors drastically declined. “My slow time’s usually January and February,” he explains. “But March and April came and there was nothing going on. By the end of 2008, I got to the point where I wasn’t working at all.”

As he fell behind on his mortgage, the bank blew him off when he tried to negotiate new terms. He finally told them he would have to give up the house if it meant shelling out $1,600 a month (his original payment was less than $900).

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