Strange Foreclosure Story
Mortgage Fraud?

by Coleen
(Colorado)

Looking for helping hand

We were told by a builder/finance company that my husband and I had a mortgage approved for the construction of our home on our property. The payments were to be what we could afford and consolidate a few loans into the payment. After these companies told us we were approved for a mortgage we signed paperwork for a construction loan. The land was bought and paid for years earlier. Needless to say for 6 months monies were taken out to "pay" for bills and no work was done on our property. We had already started some of the ground work before signing. The contractor went out of business, taking money with him. We were finally able to have the home delivered, set and are living in it.
Now, comes the mortgage. Contacted the mortgage company and was told can't help you. They tried to get us a mortgage for $140,000 over what we owed, farmed out our credit and NO mortgage. Now we try to get a mortgage, big surprise aren't able to. Being on disability our debt to income ratio doesn't work and never did. Had we know this in the beginning we would never signed for the home or construction loan. This has happened to several other people also. The guy who holds the construction loan, gave differing amounts to the mortgage companies we had contact him. All more than what we owed. We were never told how much we owed even after asking several times. The company who holds the construction loan has gotten a judge to order a sale for foreclosure. There are other victims like us. This is our only home, we can't go back to work, we're on a fixed income SSDI. How can we save our home? This is the only debt we have, except for a few medical bills and a few other bills.
If we lose this home my husband goes to a nursing home.
Can we file bankruptcy to save our home? We can afford to pay a mortgage, but we can't get one. Does anyone have ideas to help us?