Donna Hanks initially purchased her home (315 South Ellwood, Baltimore, MD 21224) on 7/06/2001 for $87,000. She re-fi’d in 2005 for $270,000, went into bankruptcy in 2006, and this was the 2nd foreclosure. The $300 a month was actually the $340 a month she agreed to re-pay as she was over $10,000 behind in her payments. The house was sold in July 08 and they couldn’t get her out until September 08 after not paying anything for over a year.
Homesteading involves abandoned or never utilized property. This house is obviously owned by at least the bank and a two minute phone call could have revealed it was now sold to a new owner. That house was never hers. It was the banks. It’s unlikely she was even close to having more than 50% of the principle paid.
Groups like ACORN and those who support them helped create this housing bubble by using government to ban so called discrimination in lending, redlining, pushing for the CRA and low interest rates.
That term predatory lending bugs me big time. Why isn’t it predatory borrowing? The government was incentivizing if not forcing banks to lend. No one forced the lendees to borrow. No one forced them to ignore the contract or keep them from having a lawyer look over the mortgage.
If you can’t afford to own, rent. If you want to homestead there is plenty of unutilized land out west.