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Joy Jenise Jackson’s Metropolitan Money Store Put Fort Washington Couple’s Home at Risk

October 10th, 2007 by PG Chic

More on Joy Jenise Jackson’s Metropolitan Money Store in the Washington Post article today, “Trying to Hold Onto Home - Metropolitan Money Store Put Their House at Risk, Md. Couple”. The article goes into detail about the hardships of the Prunty’s of Fort Washington. Their story really gives a face to hardworking people who were taken advantage of. This unfortunate turn of events for the Prunty’s and others facing foreclosure should be lessons learned to—

(1) Always read the fine print before you sign anything.
This should not only be a rule of thumb in dealing with mortgages, but when signing any contract. The “fine print” should hopefully (but probably not in all cases) help to identify terms that you do not agree with and/or to recognize potential scams. Also, many of the foreclosures today are a result of people not realizing that the financing for their home was based on a short-term ARM. These ARMs may have included low introductory rates that are now adjusting, which result in higher unaffordable payments.

(2) Realize that only YOU have your best interest at heart.
Trust yourself first and your gut. If something does not sound right or sit well with you, ask questions and stop the process if necessary.

(3) Educate yourself about standard lending guidelines.
If necessary, seek advice from a state-run housing agency if you cannot find a trusted financial advisor. Do your homework and research before making major decisions.

(4) Be realistic about your financial situation in order to make smart decisions for your future.
A common example is knowingly getting an interest-only loan (or option ARM) with a huge loan amount (for example, over $500K) that you would never have qualified for with a traditional 30-year mortgage. The problem is the rate will ultimately adjust and if you only qualified based on only paying interest, tacking on principal and a higher rate is simply not affordable. Top that scenario with decreasing home prices and many find themselves owing more on their house than what the house is worth. Keeping up with the Jones family in this case sounds like a recipe for foreclosure. Prince Geroge’s County has the highest percentage of foreclosures in Maryland, which says it all. See foreclosures from 2005 to June 2007.

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