Dateline | August 30, 2013
>> you deserved the pool and the outdoor barbecue?
>> he worked hard for it. i worked hard. no, i don't think it was excessive.
>> for the sadowskis, signals that the economy was about to change.
>> at that point i started seeing that this was. getting better, it progressively got worse.
>> as business dried up, tim had to start letting workers go.
>> when i have to lay people off that have helped me build my business, i feel like a failure. i mean it hurts me deep down inside. i would be up at 2:00 in the morning until 5:00 in the morning, sleep for an hour down here and go to work when there wasn't any work, looking for work.
>> as the months went by and still no construction projects, tim was willing to take just about any job.
>> i applied for over 100 jobs when things started to slowdown online and to get interviews to get back into construction.
>> they cut back on their spending, but a year later, tim 's business had all but stopped. their savings ran out. krichelle got a job working part-time as a lunch aid supervise at her kids' school. they also turned to family and friends for help.
>> we borrowed a lot of money. which i hate. but we just keep thinking, it's going to get better, it's going to get better.
>> they scrambled to generate money, selling the toys that once gave tim so much pleasure.
>> i have classic cars nobody wants to purchase.
>> the bills were piling up and there wasn't enough money to pay them.
>> we don't owe them anything anymore. we used to have an rv, that was repossessed. i had a merced des that we couldn't pay on anymore and that was repossessed.
>> tim had to do something he never imagined, close his office and shutter his business. and when the company closed, the family could no longer afford health insurance . at this point, tim was desperate.
>> when we started to really struggle, i started using a lot of credit cards .
>> through it all, they had hoped their home would be their safety net . but it could no longer hold the weight of their debt. the sadowskis' house went into foreclosure.
>> this is all the paper work that i generated trying to save our house since 2008 .
>> tim tried desperately to convince the bank to modify his mortgage, making the term of the loan longer.
>> each time i got a letter back that we didn't qualify for a modification. resubmit paper work again.
>> the sadowski's story is the story of millions of americans.
>> jacob hacker has studied the impact of the recession on families like the sadowskis.
>> the numbers are staggering, there's 6.6 million foreclosures between 2007 and the beginning of 2010 .
>> and it wasn't as if they could move in with family. krichelle's mother beverly who lives about 25 miles away, was also trying to save her house . it had been in foreclosure for a year and a half.
>> i saw this tape up there with this paper work and i thought, what's going on? that's when i noticed it was the notice of a trustee fail.
>> we were there when the bank notified her that her house would be auctioned off in a month.
>> i've got days, days. as far as -- what do you mean as far as? as far as stopping this. i want to keep my home. i have been here 27 years.
>> her husband who repaired computers had lost most of his business during the recession, making it impossible to repay their mortgage.
>> isn't it a case of denial that your home --
>> for most americans, your home is their major asset. if your house is repossessed, your credit is ruined, you think you won't be able to get another house . it's not denying, you just hope against hope that you can work it out.
>> each had a house that was under water, meaning they owed morning the house was worth. for the sadowskis, about $90,000 more. by 2009 , the value of their home had plummeted about $300,000.
>> i can't sleep at night. i don't want to lose my house . i don't know where we would go.
>> for noah and owen, no more backyard pool parties and their expensive dirt bikes and four wheelers were sold. and you guys are okay? you have adapted?
>> we don't need a ton of stuff, a few things here and there would make us happy.
>> that's a good attitude, a lot of kids in your situation would maybe be feeling kind of sorry for themselves.
>> i haven't felt like sorry for myself, i feel more sorry for my parents because they don't get as much time to spend together.
>> i thought you were going to feed them.
>> and when their parents were together, they were often bickering.
>> did you use a coupon?
>> the finance crisis has already taken so much from this family.
>> we argue a lot because of the finances.
>> and now it was threatening to claim something more important than all of that, tim and krichelle's marriages.
>> i'll get personal with it, my wife told me in august that she wanted a