I Lost My Home to Foreclosure — And It Changed Everything

By Jesse Rivas | Jesse Rivas Realty | jesserivas.kw.com

I don’t love telling this story. My dad’s voice is always in the back of my head, “You don’t need to brag if you’re doing what you need to do. Your actions say everything.” And I live by that.

But I’ve come to believe that sharing what I went through isn’t bragging. It’s being real. And if one person reads this and feels less alone or finds a path forward they didn’t know was there, then it’s worth it.

The Dream Home

Around 2005, I bought a new-construction home in Newman, California, a small town in the Central Valley. Four bedrooms, single-story, about 2,000 square feet. I did all the upgrades. Marble entryway. The works. My mom was there when I was buying it, and she said, “Son, this is your dream home. Get everything you want.” And I did.

I paid around $325,000 for it. In those early days, the value was still climbing; it hit about $400,000. I refinanced within the first year, pulled some money out for things I was trying to do, and the loan went up to around $360,000. I thought I was doing everything right.

When Everything Started to Unravel

Then the housing bubble burst, and my personal life started unraveling at the same time.

I was going through a divorce. My daughter was four years old. I was an hour and a half away from my parents in Oakland, working a contract job while trying to get on permanently so I could get benefits for her. I lost two cars to repossession, including a supercharged Monte Carlo I absolutely loved. The home value crashed to around $120,000. And I was sitting there with a $360,000 loan.

I tried everything to make it work. Roommates. Borrowing money. Kicking the can down the road. But that’s never a good financial philosophy; you always have to pay the piper eventually. And eventually, it came.

The Decision

It was my dad who finally said it plainly: “Son, it’s time. You have to make a decision.”

So I let the house go. It went into foreclosure in 2007. And that was one of the hardest things I’ve ever done, not just financially, but emotionally. Losing your home feels like failure. It hits your pride, your sense of identity, your plans for the future. All your goals have to be re-shifted. Add in the divorce, a four-year-old, lost cars, and credit in ruins, it was a lot.

Starting Over — With Nothing But a Promise

I moved back in with my mom and dad in Oakland. I was almost 40. It wasn’t easy on the pride. But they were good about it; I think they genuinely liked having my daughter and me there. Still, I knew I couldn’t stay.

We moved to an apartment in Alameda. It was noisy. It didn’t feel right for my daughter. And on the second night in that apartment, I made her a promise: we are going to buy a house.

I started with the credit. Negotiated the old collection accounts and repossession balances, almost $40,000 worth, down to something manageable. Paid off the small debts first. Chipped away one thing at a time. Baby steps.

I found a great job, one I would go on to keep for 17 years. Went back to school and got my bachelor’s degree. Then my MBA. Started working toward my doctorate. Stayed focused on the goal.

The Turning Point

There was a moment at a Warriors game when I ran into my cousin Mario. We sat together, and I started telling him everything that was going on. He looked at me and said: “Cousin, it’s okay. Think of it like this: you get to choose again.”

Those words hit differently than he probably intended. For me, it meant choosing myself and my daughter. Choosing a better path. Choosing to keep going.

Five Years Later — A New Home

A few years after the foreclosure process wrapped up, I took over someone’s apartment lease in Alameda. Renewed it once. And then, when that year was up, we were done with apartments. We moved into a beautiful home in Bay Point.

Five years from foreclosure to homeowner again. Not because it was easy, but because I was relentless about the steps.

What I Know Now (That I Wish I Knew Then)

Being in real estate now, I can look back and see options I didn’t know I had at the time. I could have rented the house and covered part of the loss each month until values recovered. And they always recover; the housing market always comes back up. It’s just a matter of time and strategy.

If I’d had a different job situation, I might have made different choices. And if I’d had a knowledgeable, honest real estate agent in my corner, someone who actually understood my situation, my story might have gone differently.

That’s part of why I do what I do.

If You’re Going Through Something Similar — Let’s Talk

Whether foreclosure feels like it’s coming, has already happened, or you’re just trying to figure out your next move, reach out. There’s no judgment here. Just honest conversation and real options.

Wherever you are right now, we can start planning the pathway forward today.

Jesse J. Rivas, Realtor®

DRE No. 02282782

(510) 506-3800

Facebook: JesseRivasRealty

IG: @jesse_rivas_realty

Email: JesseRivas@KW.com

Website: JesseRivas.KW.com

YouTube: @JesseJRivasRealty