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Whitt family loses farm
by Matthew Hensley
2 years ago | 1504 views | 0 0 comments | 10 10 recommendations | email to a friend | print
"This is no fun," said Auldin Webb, a Rockingham attorney. He was holding an foreclosure auction at the entrance to the Scotland County Courthouse.

Auldin read the descriptions of two properties to a reporter, the only other present for the affair.

The first property, a 100-acre chicken farm, yielded one bid. The $226,626 bid was entered by Webb for his client, Cape Fear Farm Credit.

The second property, a Gibson home on five acres, received no bids.

He then stepped into the clerk's office to file the paperwork with the county.

The home and the farm belonged to Kim and Kelby Whitt, up until they defaulted on their farm loan.

This scene has become common across the country as foreclosure rates have skyrocketed.

Some families couldn't make their mortgage payments because of interest rates skyrocketing, or because jobs losses and pay cuts depleting their finances. Others simply took out loans too big for them to be able to pay back.

The Whitt family, however, lost their farm despite making every single payment in full and on time.

Their farm loan, which was through Cape Fear Farm Credit and North Carolina Agricultural Finance Authority, had a provision requiring they maintain a contract with a chicken contracting company.

Their contract, which was with Pilgrim's Pride Corporation, was terminated when the company went into bankruptcy proceedings in December.

The Whitt family also used the equity in their home as collateral for their farm loan, which also put their home on the auction block this week.

The Whitts' contacted U.S. Rep Larry Kissell's office for help.

"It actually slowed everything down as far as them foreclosing," Kim said.

A caseworker was able to negotiate with the lenders to see if the Whitts' could keep their home.

"North Carolina Agricultural Finance Authority and Cape Fear have both agreed to remove the lien from the house if FSA agrees," Kim said.

The problem is the Farm Service Agency, the agency that guarantees the Whitts' farm loan, has refused to remove the lien on the house.

"It's the Department of Agriculture that's throwing us out of our house," Kim said.

Kissell was unavailable for comment Wednesday - he is in the Middle East visiting troops - but his congressional office released a statement about the Whitt family losing their home.

"We are saddened by what has happened to the Whitt family," the statement read. "Kissell’s office is working to help other families avoid foreclosure through an aggressive casework program where we work with each family to find solutions that will keep them in their homes. The sooner constituents contact our office for help, the better the chance is that we can help them save their home."

The office said they could not comment specifically about what services they provided for the Whitt family, citing confidentiality agreements caseworkers have with constituents.

The office also noted that they are partnering with non-profit housing agencies to host a series of Fair Housing seminars, the first of which was held Saturday.

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