Evening star., 1936-10-03
HOME OWNERS MAKE DRAMA
Far Flung Government Loans Have Been Made Amid Scenes
Which Brought Out Pathos Inspiring Courage and Some
Humorous Phases of Life of People.

negotiations we're necessary before all
parties to the refinancing could be
brought into agreement, so the loan
could be closed. Today the mortgage
is regarded as one of the best on the
books of the corporation in that
county.
WE USUALLY visualize the calam-
ity of foreclosure in terms of old
time 'mellerdramer, with silk.
hated, handle-barred mustache vii.
lain in Prince Albert coat, of the name
Of Jack Dalton, thrusting into the
hands of the hapless widow papers
that bar her forever from the home
of her heart and love.
But the individuals and financial
institutions formerly holding mort
cages taken over by H. o. L. c. were
by no means Of one class or character.
They differed from one another ale
most as much as did the borrowers.
The mortgage might be a great bank.
representing a principality Of steel or
motors. or a retired workman whose
chief source of income was one or two
mortgages on small homes.
During the depression years thou
sands of these mortgage holders CO.
operated with their distressed debtors
to the limit of their resources. In
many cases, sometimes at the sugges-
ton Of H. o. L. c. representatives,
they reduced the payments required
under the original loan, enabling the
mortgagor again TO carry his obliga-
ton, and relieving the corporation of
the burden of financing him. They
often granted temporary extensions of
principal or interest. or exercised
"forbearance." as the real estate term
goes. In the records of the corpora
ton are many instances in which the
creditor willingly scaled down the
amount of the defaulted debt to bring
it within the maximum which the
corporation could lend on the prop
erty and thus avoid foreclosure
In fact. there are cases in which
the mortgage holder deserves more
sympathy than the borrower. For, as
is inevitable In dealing with such
large number of persons, it was soon
found out that not all of the home
| owner applicants and borrowers pos
sessed the four cardinal virtues.
There are those who have taken ad-
vantage of opportunities to try to
evade repayment Of their loans, ne
glecting to pay the small monthly
ir,ef efoI Re III
to do so. There is the family that
pays no principal or interest or taxes.
and, when H. o. L. c. foreclosure i'm
pends, moves to another section of
the country. leaving the corporation
the expense of acquiring and manag
ing the property prior to disposing
of 1t.
THERE is the occasional ''milker"
Of the property, sometimes bor-
rover, sometimes a conniving second
party. who has managed to buy the
title for small sum. His method is
to hold the property. pocket the in
come. ignore the obligations Of the
mortgage agreement, taxes, insurance
and repairs. and so continue until the
processes of law catch up with him.
His aim is to dump the property on
the corporation after he has extracted
the last dollar possible from 1t. In
some States the laws permit such a
course of action for up to a year and
a half. Sometimes a delinquent bor-
rover conceals the facts of his con-
dition from the field representative
Of the corporation, whose job is to
help him work out of his dificulties.
The great mass of the families
whose homes have been snatched
from the auction block are in an en-
tirely different category. Appreciative
of the assistance given them in the
emergency of their home, they are
doing their best to carry out their
agreement with the Government.
These million owners Of small prop
critics are a cross-section of the
thrifty, hard-working. home-loving
American people. They look sur
prisingiy like your neighbors. During
periods of regular employment and
income, Whether professional men or
lsborers. they had put q large part
of their savings into homes in which
they could rear their families and
enjoy their elderly days. and pass on
In the future to their children.
Six years ago they would have
laughed at the idea that they would
ever have to borrow from the Govern
ment. Some are again in comfort
able circumstances after the hazards
Of the depression; others find 1t Q
struggle to keep UP their homes and
their contracts with the Government.