Didn't read til the end but why keep the second home or did they eventually sell it?
They were using it as a rental property for more income/asset appreciation. Unfortunately, their selection of their first tenants sucked and never paid a dime.
I bet they were either directly coached how to game the system or mentored by someone who was.
Of course they were, to the tune of $750/month for a while. FTA: "The couple said someone — they do not remember who — referred them to the Brooklyn-based Litvin Law Firm, which specializes in foreclosure defense. The Boatengs said they started paying Litvin $750 monthly. This continued for two years, for a total of $15,000, they said."
$750/month doesn't fix the problem, of course, but it's cheap rent compared to the $4-5k payments the bank wanted on the reset ARM loans.
I get the feeling from the article that it was a lot like the fable of the frog and the pan of water - dump a frog into hot water and it'll jump out. Heat the pan ever so slowly and you'll cook it alive.
Reading between the lines they got suckered from the beginning, blinding by the bling of a home, only a dream in their home country. Then the idea of jettisoning the home never occurred to them, nor was suggested by the 'trusted' agencies they were referred to by their church.
At this point, I think they should declare bankruptcy. They owe ~3X the money the house is worth. A judge should allow them to jettison most of the debt, move into the other house and work on paying it off.
At least it sounds like they're now working with a certified non-ripoff artist company to get this stuff straightened out(IE stick as much of it to the bank as possible). Personally, I think that the bank SHOULD take a wash(and with the selling of their loan, already anticipated), for being stupid enough to lend them the money in the first place.
