In Debt To Start, and Sinking Even Deeper

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Approached by a loan seller, Theodora Roach agreed to what turned out to be a balloon loan. Later, she got help through a government program and the Neediest Cases Fund.

Approached by a loan seller, Theodora Roach agreed to what turned out to be a balloon loan. Later, she got help through a government program and the Neediest Cases Fund.

The New York Times Neediest Cases Fund recently featured this Children’s Aid story, written by Jennifer Mascia, about Theodora Roach and how she received help after unknowingly entering into a balloon loan. Below is an excerpt from the original article:

Theodora Roach’s subprime journey started with a knock at the door.

In 2004, the Fidelity Group sent sales representatives to her block in Flatlands, Brooklyn, where, in 1997, she and a cousin had bought a three-bedroom home for $169,000. The sales agents were offering a refinancing and loan package they said could lower her mortgage payments.

Ms. Roach had already borrowed $25,000 against the equity in her home — first to finish the basement, then to help cover her payments because her cousin, a correction officer, disappeared, along with her half of the $1,500-a-month mortgage.

Behind on her first mortgage, and to avoid a lien on the home, which she shared with her mother and adult daughter, Ms. Roach, 58, accepted the offer.

It turned out to be the biggest mistake of her life.

Read more…

To learn how you can make a difference for this family and many others, please link over to The New York Times Neediest Cases Fund or contact:

The New York Times Neediest Cases Fund
230 West 41st Street
Suite 1300
New York, NY 10036
(800) 381-0075

Photo courtesy of Raymond McCrea Jones for The New York Times