The Arnold Family has a black cloud following their every move. Five years ago, the Arnolds’ owned a couple of house with no debt. A family member asked for some financial help for a new business. Believing in their kin, they re-mortgaged their two houses to the maximum to help out with this venture. They also signed on as co-owners of the venture, although they had nothing to do with its day-to-day activity. Two years into the venture, the family member who had asked for help went bankrupt, leaving the Arnolds’ picking up the pieces. Not knowing the business, they were forced into bankruptcy themselves. They were able to keep the houses since there was virtually no equity. They thought their troubles were over. Through some screw-up in the system, some creditors did not get named in the original bankruptcy, so the Arnolds’ had to go bankrupt a second time. Again, there was very little equity in their houses, so they were able to keep them.

Here we are five years from the original mortgages and the Arnolds’ receive a letter from their mortgage lender saying that due to the bankruptcies, no renewal was being offered, they would have to come up with the entire mortgage amount to pay off the debt. Devastated, the Arnolds’ applied to another bank, explaining the circumstances, and hoping that their great payment history on the mortgage would save them. The new bank manager called within hours with the rejection of the application due to the bankruptcies. The system had failed them again! They had never missed a mortgage payment in the last five years and yet no renewal. How were they supposed to payoff the mortgages? They pleaded with the original bank to renew, to no avail.

They asked for my help, and indeed I could get them a new mortgage to payoff their original mortgage holder but because of the bankruptcies, the interest rates were considerably higher. The rates and fees in fact were so high, they could not afford the monthly payments. Would they have to sell the family homestead?

I suggested they write a carefully worded letter to the bank’s umbudsman, suggesting in a subtle way that this lack of renewal offer has put them in a precarious position. At their age (senior citizens) moving out would create a harsh atmosphere that could theoretically put the bank in an awkward legal position. Knowing they had my mortgage commitment, they wrote the letter. If push came to shove, they could take my mortgage for a while, until they could sell the houses, or until the original bank came to its senses.

Low and behold, there is fairness in the system. Three days before they had to take my expensive mortgage, the original bank called to say they would renew the mortgage, but not at a discounted rate. The Arnolds’ would have to pay the posted rate, which happened to be 2% less than the mortgage I had arranged for them. I failed to earn a fee since the Arnolds’ canceled my mortgage, but I was happy in the knowledge that my input had saved the day.

Yesterday I received by courier a huge bouquet of carnations, with a thank you note and some homemade raspberry jam. Your welcome!!!