Portrait of a ‘no-money-down’ foreclosure

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The fourth and final installment of Peter Hong’s foreclosure series in the L.A. Times tells the story of a no-money-down ‘liar loan’ that’s on its way to foreclosure.

Details: The husband was a carpenter working on new homes, the wife worked in a food-processing plant. The house (pictured) was in Santa Maria, Calif., the cost was $412,000 about two years ago.

The financing: no-money-down, two loans -- 80% and 20%, the old 80/20, stated income, and not very accurately stated:

‘Patricia Prado tells her story without a trace of self-pity and only a bit of blame for the mortgage broker who she says gave her a hard sell.

‘She acknowledged that she stated her monthly income as $7,500 on the loan application -- nearly double what she was actually earning in her job as a clerk at a food-processing company and a second part-time job.’

The husband lost his job -- no new houses to build these days. The family resorted to using their credit cards to pay the mortgage, then stopped paying the mortgage in February.

‘Financially, Prado says she hasn’t really lost anything, since she put no money down to get her mortgage. She’s looking for a place to rent.’

Your thoughts? Comments? E-mail story tips to peter.viles@latimes.com

Photo: Los Angeles Times