Wednesday, October 19, 2011

Builder's Contract For Deed Scheme Used To Unload Unsold Inventory Leaves Would-Be Homebuyers Holding Bag As Bank Refuses To Extend Construction Loans

In Spokane. Missouri, KY-TV Channel 3 reports:

  • Entire neighborhoods of families in Christian County are being kicked out of their homes. The foreclosures come as quite a shock to the people living in those homes. Ernie and Sharlene Risinger and their 11 year old daughter love their Spokane home and community, but they're being forced out. Their American dream has turned into a nightmare.

  • Nearly four years ago, the Risingers moved into the place they call home. "Sounded like a great deal. He wanted $1,500 deposit or down and we would actually be buying our house," says Ernie Risinger. Or so they thought. The Risingers, like all their neighbors at River Birch Estates did owner financing with Harold Rogers. They pay him $1,100 a month on a 30 year loan.

  • All was fine until a few weeks ago. "He was taking pictures of the house, and I said, 'Are you with the insurance company or something?' and he said, 'No, I'm with the bank,'" says Risinger.

  • That man with People's Bank of the Ozarks told them to watch the mail and the paper. "It was just really hard getting information from anybody," Risinger says. In late September, the Risingers got a letter, telling them to start making payments directly to the bank. But Harold Rogers again asked the Risingers to pay him. They've decided to just put the money in the bank for now.

  • Now, the foreclosure notices are published. Rogers' attorney says the bank has refused to renew Rogers' short term construction loans. He also says the value of the houses have dropped because of the economic recession.


  • The Risingers and all their neighbors have close to 20 kids in Spokane schools, who are also taking the news hard. "She loves the teachers, she loves the school, it's just really sad," Risinger says of his daugther. With more than $60,000 invested in their American dream, the Risingers are forced to start over.

For the story, see Families in Nixa and Spokane being forced from homes in unexpected foreclosures (The Risingers and many of their neighbors did owner financing with Harold Rogers, and thought they were well on their way to owning their homes).

See also, KSPR-TV Channel 33: Ozarks Homeowners Paid Mortgages on Time but are in Foreclosure (16 homes in Nixa and Spokane are in foreclosure and the people who live in them say they never missed their mortgage payments).

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