Names: Irene and Freddy Villalpando
Hometown: San Bernardino, Calif.
Irene and Freddy Villalpando were happy when they heard that Bank of America was reducing the principal on mortgages for underwater borrowers by an average of $100,000 or more.
The loan on their San Bernardino house was from BofA and about $75,000 more than the value of the home.
When they called the bank, however, they found out their loan had been sold to Freddie Mac. As a result, it didn't qualify for a principal reduction.
"We signed for a loan with Bank of America, I don't remember anyone mentioning Freddie or Fannie. It was not like we chose, so why should we be left out?," said Irene.
The Villalpando's finances have taken a hit over the past several years. Irene was forced to take five unpaid furlough days at her county job and hasn't received a cost of living increase for the past three years. In addition, their property taxes have been raised each of the past three years, even as the home lost value. Now, gas prices are killing them.
"All that left us just a little money for food and other expenses," she said. "We made a decision in September 2011 to quit making payments, after three years of struggling."
"Thankfully, My husband has his pension and I have a job: We have the ability to make a reasonable house payment," she said. "It is disheartening when we see other people get help and we do not qualify."
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