http://www.boston.com/news/local/articles/2008/07/24/the_anguish_of_foreclosure/
TAUNTON - The housing crunch has caused anguish and anxiety for millions of Americans. For Carlene Balderrama, a 53-year-old wife and mother, the pressure was apparently too much.
Police say that Balderrama fatally shot herself Tuesday afternoon, 90 minutes before her foreclosed home was scheduled to be sold at auction. Chief Raymond O'Berg said that Balderrama faxed a letter to her mortgage company at 2:30 p.m., saying that "by the time they foreclosed on the house today she'd be dead."
The mortgage company notified police, who found her body at 3:30 p.m. The auction had been scheduled to start at 5 p.m., when bidders showed up at the house and found it surrounded by police cruisers.
But, unbeknownst to buyers and to Balderrama, the auction had been postponed by the time she grabbed her husband's high-powered rifle, O'Berg said.
Balderrama left a note for her family, saying they should "take the [life] insurance money and pay for the house," O'Berg said. The chief said he did not know, however, if the family would be able to collect on the policy in the event of a suicide.
Neighbors on Duffy Drive, a forested side street on the city's east side, said Balderrama had lived in the two-story, brown-shingled, raised ranch for about four years with her husband, John, who is a plumber, and their 24-year-old son, who works in a restaurant.
Joe Whitney, who works with Balderrama's husband, said that she handled the bills in the household and that the husband was unaware of the foreclosure.
"John didn't even know about it; that's the surprise," Whitney said outside the home, where he had come to comfort the family. "It's just one of those awful, awful, tragic events."
John Balderrama did, however, file for Chapter 13 bankruptcy three times from 2004 to 2006, but the courts dismissed the petitions. Debtors who declare bankruptcy under Chapter 13 generally can keep their homes while paying off their debts under a court-approved reorganization plan.
As Congress rushed yesterday to help 400,000 strapped homeowners avoid foreclosure and prevent <org idsrc="NYSE" value="FNM;FNM-H">Fannie Mae</org> and <org idsrc="NYSE" value="FRE;FRE-D;FRE-K;FRE-L;FRE-M;FRE-N;FRE-O;FRE-P;FRE-Q;FRE-R">Freddie Mac</org> from collapsing, the suicide underscored the potentially devastating toll of the housing crunch.
Bruce Marks, chief executive of the Neighborhood Assistance Corporation of America, said it is not uncommon for homeowners to contemplate suicide when they cannot keep up their mortgage payments. Marks's group counsels homeowners in crisis and responds to such crises by immediately notifying the police, he said.
"What gets us so angry is that people blame themselves," Marks said. "They can't see past their sense of responsibility to see the responsibility and the predatory nature of these lenders. The fact of the matter is, unless something dramatic happens, there's going to be more and more people like her taking their lives."
Police believe that when the Balderramas bought the house in a stronger market, the family chose an adjustable rate mortgage, confident they would be able to keep up the payments. But as the housing market plummeted and the rates rose, the family fell behind, O'Berg said. The house was listed yesterday on the website of Commonwealth Auction Associates Inc., but the auction, scheduled for Tuesday at 5 p.m., was marked "canceled."
The mortgage company, PHH Corp. of Mount Laurel, N.J., did not respond to requests for comment. Harmon Law Offices PC in Newton, which represents PHH, released a statement saying that because of confidentiality and privacy laws, the firm could not discuss specifics of the foreclosure.
"We're shocked and saddened by what has occurred," the statement said. "Our deepest sympathies go out to the family for the terrible loss it has suffered."
Noreen Mendes said Balderrama never spoke about financial troubles when she saw her neighbor on morning walks. Mendes said she and Balderrama chatted about home repairs and their children.
"I never would have guessed that she had any problems whatsoever," Mendes said. "All I can do this morning is pray and pray and pray."
Whitney said he did not believe that Carlene Balderrama had a history of mental illness.
"It looked like a happy couple," Whitney said. "That's why John was so blown away. Nothing medically ever came up, and I've known them for 20 years."
O'Berg said he was troubled that the pressures of foreclosure had triggered suicide on a street that he described as solidly middle-class.
"That's the real sad part: This is a middle-class family, a husband working, the son is working," O'Berg said. But the housing crunch, he said, "is inflicting real pain on middle-class Americans.
"Put yourself in her shoes," he added. "You handle the finances, and you're hiding everything from family. It's a lot of pressure."
TAUNTON - The housing crunch has caused anguish and anxiety for millions of Americans. For Carlene Balderrama, a 53-year-old wife and mother, the pressure was apparently too much.
Police say that Balderrama fatally shot herself Tuesday afternoon, 90 minutes before her foreclosed home was scheduled to be sold at auction. Chief Raymond O'Berg said that Balderrama faxed a letter to her mortgage company at 2:30 p.m., saying that "by the time they foreclosed on the house today she'd be dead."
The mortgage company notified police, who found her body at 3:30 p.m. The auction had been scheduled to start at 5 p.m., when bidders showed up at the house and found it surrounded by police cruisers.
But, unbeknownst to buyers and to Balderrama, the auction had been postponed by the time she grabbed her husband's high-powered rifle, O'Berg said.
Balderrama left a note for her family, saying they should "take the [life] insurance money and pay for the house," O'Berg said. The chief said he did not know, however, if the family would be able to collect on the policy in the event of a suicide.
Neighbors on Duffy Drive, a forested side street on the city's east side, said Balderrama had lived in the two-story, brown-shingled, raised ranch for about four years with her husband, John, who is a plumber, and their 24-year-old son, who works in a restaurant.
Joe Whitney, who works with Balderrama's husband, said that she handled the bills in the household and that the husband was unaware of the foreclosure.
"John didn't even know about it; that's the surprise," Whitney said outside the home, where he had come to comfort the family. "It's just one of those awful, awful, tragic events."
John Balderrama did, however, file for Chapter 13 bankruptcy three times from 2004 to 2006, but the courts dismissed the petitions. Debtors who declare bankruptcy under Chapter 13 generally can keep their homes while paying off their debts under a court-approved reorganization plan.
As Congress rushed yesterday to help 400,000 strapped homeowners avoid foreclosure and prevent <org idsrc="NYSE" value="FNM;FNM-H">Fannie Mae</org> and <org idsrc="NYSE" value="FRE;FRE-D;FRE-K;FRE-L;FRE-M;FRE-N;FRE-O;FRE-P;FRE-Q;FRE-R">Freddie Mac</org> from collapsing, the suicide underscored the potentially devastating toll of the housing crunch.
Bruce Marks, chief executive of the Neighborhood Assistance Corporation of America, said it is not uncommon for homeowners to contemplate suicide when they cannot keep up their mortgage payments. Marks's group counsels homeowners in crisis and responds to such crises by immediately notifying the police, he said.
"What gets us so angry is that people blame themselves," Marks said. "They can't see past their sense of responsibility to see the responsibility and the predatory nature of these lenders. The fact of the matter is, unless something dramatic happens, there's going to be more and more people like her taking their lives."
Police believe that when the Balderramas bought the house in a stronger market, the family chose an adjustable rate mortgage, confident they would be able to keep up the payments. But as the housing market plummeted and the rates rose, the family fell behind, O'Berg said. The house was listed yesterday on the website of Commonwealth Auction Associates Inc., but the auction, scheduled for Tuesday at 5 p.m., was marked "canceled."
The mortgage company, PHH Corp. of Mount Laurel, N.J., did not respond to requests for comment. Harmon Law Offices PC in Newton, which represents PHH, released a statement saying that because of confidentiality and privacy laws, the firm could not discuss specifics of the foreclosure.
"We're shocked and saddened by what has occurred," the statement said. "Our deepest sympathies go out to the family for the terrible loss it has suffered."
Noreen Mendes said Balderrama never spoke about financial troubles when she saw her neighbor on morning walks. Mendes said she and Balderrama chatted about home repairs and their children.
"I never would have guessed that she had any problems whatsoever," Mendes said. "All I can do this morning is pray and pray and pray."
Whitney said he did not believe that Carlene Balderrama had a history of mental illness.
"It looked like a happy couple," Whitney said. "That's why John was so blown away. Nothing medically ever came up, and I've known them for 20 years."
O'Berg said he was troubled that the pressures of foreclosure had triggered suicide on a street that he described as solidly middle-class.
"That's the real sad part: This is a middle-class family, a husband working, the son is working," O'Berg said. But the housing crunch, he said, "is inflicting real pain on middle-class Americans.
"Put yourself in her shoes," he added. "You handle the finances, and you're hiding everything from family. It's a lot of pressure."
