Woman Misses Mortgage Payment, Nearly Loses House

mortgage payments
mortgage payments

An elderly woman is suing two banks and a law firm that tried to foreclose on her Deptford, N.J., home after she missed making her final mortgage payment of $432 when she was in the hospital, reported the Associated Press. The tragedy possibly could have been avoided had she taken some precautions, say experts who spoke to AOL Real Estate.

Dorothy Rhue Allen, 85, had borrowed $40,000 to buy the home in 1976 and had only one payment left to make when she was hospitalized in 2006 and went into default. That's when LaSalle Bank initiated foreclosure proceedings through the law firm, Fein, Such, Kahn and Shepard. Cenlar Federal Savings Bank serviced the loan.

Allen hired an attorney to help save her home, which it did, but the banks say that her $432 due swelled to $5,797 in late fees, penalties and other charges.