two months later, though, litton transferred the loan to green tree. >> green tree took over. the mortgage just started going up. and, my 401k, my bank account my car that, the only car that i bought myself, a 2003 monte carlo, brand new, i had to get rid of that to pay for the mortgage. >> reporter: last year, an independent watchdog found that green tree failed eight out of 29 tests of how it treated struggling borrowers. but by then, the house was already in foreclosure, saddled with $25,000 in back payments fees and penalties due, on a property now appraised at $45,000. real estate agent marc joseph is wholly sympathetic, but he can see the lender's point of view. >> he signed up for $139,800. he signed up for that. if i was holding the mortgage, and i'm watching tv right now you owe me $139,000, get out! >> reporter: and that's the law. but the house is now worth only a third of that, as david has explained to his lenders. >> "oh, we'll help you, we'll help you," and then they give me the runaround and nothing gets done. and now i'm actually homeless once i hand you this