How to save a condo from falling into foreclosure
A New York City condo owner who had a hard time keeping her apartment from being towed off the market in January has decided to sell it for $500,000 instead of foreclosure.
Lorraine Ouellette sold her $500K home in Greenwich Village in May, but a few months later she was told she would be foreclosed on for the first time in her life.
“The bank said that it was too risky,” Ouelelle said.
“It was the hardest decision of my life.”
Ouellette said that she had been planning to sell the home for more than a year, but was hesitant to give up the home because she feared it would fall into foreclosure and ruin her finances.
“I’m not a financial planner.
I’m not an investment banker,” she said.
Ouelelle, whose mother died when she was young, was forced to sell her apartment after her parents were evicted.
She said that at the time, she was not a member of any real estate association and could not find a mortgage that would help her afford the mortgage.
“I thought it would be easy to buy my own home,” Oullette said.
After being evicted from her home in November, Ouelle said she spent the last month trying to get a loan.
She finally got one last month, but Ouelette said that after months of trying, she couldn’t find a lender willing to mortgage the property.
“My credit score was a little bit low.
I had no credit history.
I don’t have any friends who have mortgages,” Oellette said, adding that she was unsure whether she would qualify for the loan because she was a single mother.
Oulette said she did not have a problem with the loan itself, but she was upset that her bank, which she had signed a loan with, had taken the money that she and her parents had saved for the property and invested it in a bank account.
“They said, ‘You’ve just been evicted,'” Ouellete said.
The bank later sent Ouelletys credit report to a mortgage broker to determine whether she qualified for a mortgage, but when the broker refused to mortgage her home, Oullete said she decided to do so herself.
The broker then sent her an offer of $1.25 million, which Ouelte accepted.
However, when Ouelrette tried to apply for a second mortgage with the same broker, she said she was turned down for the same reason as Ouellett’s previous mortgage.
“It was hard because they said that the mortgage was a bad deal,” Oulelette said of her previous mortgage, which was $4,000 less than her new loan.
“So I did what I had to do and I gave it to them.
It was a good decision.”
Ouletas husband, Ryan, who is a financial advisor, said that while Ouelletes decision was tough, he would have to agree with her.
“We all would agree to have a good mortgage and to do everything right.
But, I’m also going to say this: You shouldn’t have to do that,” Ryan Ouelley said.
Ryan Ouelles son, Cody, said he was not surprised that Ouellees decision was difficult.
“She had to take on this mortgage.
She had to pay all of the bills,” Cody Ouelsaid.
“But I think her actions have been good and her decision was good.”
Ryan Ouedles family said that they had been expecting Ouelites husband Cody to sign the mortgage, since Cody had recently purchased a house in Westchester County and was planning to move to the Bronx in the near future.
Cody said that Ouletis decision to sell was one of the toughest he had ever had to make.
“When you have to sell your house, that’s a tough decision,” Cody said.
“This is the first mortgage that I’ve ever done. And I don´t know how I am going to pay for it,” Cody added.
“What am I going to do with it?”
Ouelles husband said that he has been considering selling the house as well, but that he had been told that the bank would not accept a mortgage for a condo that is valued at more than $500 million.
“This is a very difficult situation for me,” Ouelles husband said.
“I was going to give it a chance to work out a way to pay it off.
But they are telling me that this is a bad mortgage,” Oulettes husband added.