KELSEYVILLE — Kelseyville resident John Thiel, 64, remains one step away from foreclosure.
Thiel said Tuesday that while he is not out on the street, he is still struggling. Live Well Financial representative Dixie Dunbar said Thiel is $52,000 short of qualifying for a reverse mortgage.
“He didn”t qualify for a reverse mortgage because he didn”t have enough equity in his property, because the market value went down and because from one year to the next, his loan for $112,000 jumped to $121,000 for the payoff,” Dunbar said.
Dunbar said the value of Thiel”s home dropped 32 percent from last year, when he applied for a refinance loan in May 2007. The lower market value and Thiel”s age means the most he can get in a reverse mortgage loan is $70,406.
“In his situation, he could lose his house. Unless he can come up with $650 on a monthly basis, and that”s all but roughly $240 of his income,” Dunbar said.
Thiel”s story was told in the April 17 edition of the Record-Bee. He said despite community response to his story, not a drop of money has landed in a WestAmerica bank account named “Save our home” that he opened.
Thiel has a month-to-month arrangement with The Money Brokers to pay less than his $1,070 mortgage payment. The Sacramento brokerage firm refinanced his home in May 2007. The 20-year loan combined his original home loan, his credit card debt and another loan, and carried an 11.5 percent interest rate.
Thiel received a letter saying he needed to pay $650 by April 25 or his home would go into foreclosure. Thiel said with mounting bills that included taxes, car registration, a $1,000 annual water bill, home insurance, medical expenses and food, he couldn”t make the payment.
The Money Brokers attorney George Ekart allowed Thiel to stay in his home and make a payment he can afford.
“I have to wait till I get my Social Security check to go see my doctor in Upper Lake,” Thiel said. With the rising price of gas and $90 in his checking account, Thiel said he had to wait until the check arrives today to allow for other expenses. His monthly income is $891 from social security and disability checks.
Dunbar said Thiel”s 11.5-percent interest rate was calculated because of bad credit and low income.
“The biggest factor is your credit score. That”s going to drive the interest rate. The only way to clear it up is to pay off the debt. He (Thiel) is ill, on SSI (Social Security Income) and disability, and he”s had a hard time doing that,” Dunbar said.
Thiel suffers from severe chronic obstructive pulmonary disease (COPD) and is dependent on an oxygen machine.
Contact Tiffany Revelle at trevelle@record-bee.com.
