Congressman, Reverse Mortgage Master and Church Congregation save 80-year-old Widow’s home

By Nadine Jolson

HOLLYWOOD, CA (Hollywood Today) 8/14/10 – — It’s heartwarming to hear that an 80-year-old woman’s house can be saved in the face of America’s horrible housing crisis. After 41-years in her home in Altadena, CA, Claudia Turrentine’s home was days away from auction. Lack of income and fraudulent lending practices left her desperate for a miracle.

Claudia’s husband died 10 years previously, and she had recently lost her youngest son, only to develop a heart condition herself. During this time, she fell victim to two mortgage brokers who ‘flipped’ her three times in five years – ending up with a negative amortized loan.

“With nowhere to turn, all I could do was pray the Lord would send someone to save me,” Turrentine said.   Fate came in the form of Malcolm McLean – a certified Reverse Mortgage Specialist who runs www.yes4reverse.com. “I realized that short of a miracle, a reverse mortgage was the only shot at saving her home.  We had to act fast.” McLean said.

Claudia’s loan had reset to over $2,400/mo. and she receives just $950/mo. in social security income. McLean began the process of qualifying her, stalled the sale date, but ran into roadblock after roadblock. So many elements had to fall perfectly in place to pull this off. Ms. Turrentine’s loan had ballooned to $383,000, and due to falling home values, she was $90,000 short of qualifying for a reverse mortgage.

First McLean waived his company’s loan fees, then contacted the President of Wachovia Bank, Mr. Stumpf – Turrentine’s lender – making a personal plea and presentation. “I needed the bank to take a closer, more ‘human’ look at Claudia’s situation,” said McLean.

Next, McLean approached Congressman Adam Schiff, who represents the 29th Congressional District, and requested some Congressional “Pixie Dust.”  Schiff immediately issued a Congressional Inquiry to Wachovia, outlining his concern that a senior homeowner with very little income could qualify for such a big loan.

“Subprime and predatory lending practices were at the heart of the economic downturn that has left far too many homeowners struggling to stay in their homes,” Rep. Schiff said.  “I strongly supported much-needed reform to prevent bad loans from being made in the first place when the House considered the Mortgage Reform and Anti-Predatory Lending Act.  The legislation, was signed by the President’s just this week, establishes a simple federal standard for all home loans: institutions must ensure that borrowers can repay the loans they are sold.”

“Working together, we were able to help Ms. Turrentine to remain in her home, and I remain committed to doing all that I can to help constituents get their loans modified and prevent foreclosure,” Rep. Schiff said.

In addition to receiving assistance from Rep. Schiff, McLean reached out to the Deliverance Tabernacle Church of God, where Claudia had been a member for more than 50 years.  The congregation raised $40,000 to help pay down the loan – but Claudia was still more than $50,000 short to qualify. With all these elements in place, it was down to a lot of praying, but a miracle did happen- a Miracle on East Mariposa Street!

For the first time in their banking history, Wachovia reduced the balance of a borrowers loan to qualify the homeowner for a reverse mortgage. Normally the only time a bank will ‘short’ a loan is for a ‘Short Sale’ where the borrower is selling the property for less than what is owed.  In this situation the extraordinary happened – Wachovia waived Claudia’s balance by over $50,000.00 and together with the Church’s contribution, qualified her for program.

A grateful Turrentine said, “When I signed those reverse mortgage papers, an enormous weight was lifted.  Mr. McLean, Congressman Schiff and the Deliverance Tabernacle Church of God congregation were heaven sent. If it weren’t for them, I don’t know where I would be living. Now I can live in my home, without any loan repayments, and never be evicted.”