A dream unravels Job loss, foreclosure, bankruptcy leave Danville family's future in question

By Rebecca Correa, Eagle Tribune

Three years ago, Steve Maglio had it all.

A six-figure job, a roof over his head, a credit score in the high 700s and a season pass that allowed his family to visit area museums.

But today, Steve, 50, and his family have become the region's latest victims of foreclosure. He, his wife and two stepchildren will be evicted from their home and may become homeless at the end of the month, because they defaulted on their mortgage payments for three months.

Unlike many of the recent foreclosures, the Maglio family was not a victim of the subprime mortgage crisis and they didn't take out an adjustable-rate mortgage.

Steve said it was underemployment that led to his situation. First, he was laid off from Wang Laboratory; next it was Schneider Automation, and finally Getronics in Tewksbury, Mass.

He wants a second chance, a better job and an affordable apartment. And if he can't get that, he wants people to know that foreclosure is a real problem that affects real people.

Almost 200 homes were foreclosed in Rockingham County during the past three months, according to Cathy Stacey of the Registry of Deeds. Last year during the same time period, that number was just 92.

"Maybe it happened to me sooner," Steve said. "But there are a lot of people that if the economy doesn't get better in the next year, there are a lot of people that aren't going to weather the storm." Living the dream

He married his second wife, Glenda, in 2005. The two rented an apartment while they searched for the perfect home to raise Glenda's two children, 13 and 16.

They found their dream home — a fixer-upper — at 41 Woodridge Road on the Hampstead/Danville line. The girls enrolled in the Timberlane Regional School District. They put a $100,000 down payment on the $260,000 home, which is now assessed at $271,900. Their monthly mortgage payments were $1,200.

"We bought our house in 2005. Everything seemed OK," Steve said. "The (temporary) job (at Getronics) already lasted longer than I expected it to."

The family splurged on an above-ground pool. Glenda, 38, said she couldn't have been happier. Life was improving for her and her daughters compared to her first marriage.

But when May 2006 rolled around, Steve lost his job. His wife got a job that paid less than $30,000 a year to help make ends meet.

Steve searched for a new job and enrolled in a local college to earn his associate's degree. He worked odd jobs, selling vacuums and trying to sell used cars. But Glenda said they still weren't bringing in enough money.

"We had a good year, year and a half, and then it just started falling apart," she said. "But we haven't given up. That's what marriage is about — you don't just give up because of the hard times."

It all falls apart

The family took out a $100,000 second mortgage in 2006 and refinanced their cars while Steve continued to look for a new job. Their mortgage payments were now $2,200 a month.

Steve said they were getting further and further in debt, mostly because he was still trying to pay $1,700 a month in child support for the four children from his first marriage, now ages 11 to 20. Last year, he said, a judge denied his request to reduce those payments.

He said he always tried to pay the child support so he wouldn't get in trouble with the law.
"There's nothing left; there's no place left to borrow money from," he said. "The second mortgage was a mistake and I know that now. I should've paid the mortgage instead of child support and let the court come after me."

In September, the family began to receive letters warning them of foreclosure because they were 90 days late on their mortgage payment.

Glenda said they offered to pay one month, because it was all they had, but that wasn't enough. By winter, the foreclosure process began.

"It was amazing," she said. "The first mortgage company wanted to work with us and the second one said, 'No way. Forget it. It's all or nothing.'"

Steve has since fallen behind on child support. He said he makes some sort of payment each month, but never has the $1,700 that Massachusetts requires him to pay.

He said the only reason the family is still in the house is because he filed for bankruptcy in March. That filing cost the family $270 and forced them to go without heat for three days until payday rolled around again.

But even now, with the looming eviction, the family has not hit rock bottom.

"As awful as things are, my life is good," he said. "I'm just sad I can't provide to (my family) like I always have in the past."

Still hopeful for the future

When Steve's shift ends, he carefully counts out the change from the tip cup behind the counter of a local Dunkin' Donuts.

He smiles despite the tedious work he's been hired for, as he makes sure to take home every cent he's earned.

Steve said he is grateful for the job and the potential he could become an assistant manager and earn a salary slightly higher than the $7 an hour he makes now.

"Even this job, I had to almost beg for," he said. "They said my resume was too good, and I said, 'Don't you think it would be more insulting if I couldn't get a job pouring coffee?'"

The Maglios said they have looked everywhere for help, even their church, but times are tough everywhere.

They said their decision to make their life story public is primarily in the hopes that someone sees their good character, and gives them a shot at a better-paying job or a reduced-price apartment, so they don't become homeless.

The family is hopeful their daughters can stay in the Timberlane Regional School District, but the family can't find an apartment for less than $1,200 a month in the area — and they don't have a down payment.

"In this economy, there's so many people in this situation, looking for a place to live, and nobody will rent to anybody without a credit check," Steve said. "That will break it for us because we all know that's not going to go so well."

No one in the family has unrealistic expectations — only for things to get better.

"I just want a job where I can support my family again," Steve said. "I'd like to have the American dream back. I've had it in my 20s and I will work hard for it again."
And even the children understand the situation, and have known they might become homeless.

"I don't keep them in the dark about anything because that's not fair to them," Glenda said. "They understand and know that Steve has put in 800 and something job applications in the last two years. I have been really blessed with children who are loving and understanding, but they also have faith in the Lord that something's going to break."

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