Case 1
KEEPING FAMILIES IN THEIR HOMES DURING TOUGH ECONOMIC TIMES! SFHDC Has the Solution to Preventing Foreclosure and Homelessness
MEET THE SMITHS...
The Smiths are a couple that had recently gone through some drastic and challenging circumstances which led to their inability to sustain payments on their home loan. In June 2008, Mr. Smith lost his job, while Mrs. Smith suffered a loss of expected income when two of her clients went out of business. The Smiths found it impossible to pay their adjustable rate mortgage with terms of 6.99% interest rate for 30 years. Fortunately, in September 2008, Mr. Smith found a new job and could verify an increase in income. However, the couple was still in distress and potentially facing foreclosure when they contacted SFHDC. They spoke with Zack (SFHDC’s foreclosure prevention specialist) who has professional expertise in lending negotiations, loan financing, loss mitigation practices and methods, and a certificate in housing counseling.
Zack worked individually with the Smiths over the next several months, contacting their lender to demonstrate that the couple did not live beyond their means, and had a balanced personal budget. After the lender verified the Smiths ability to sustain their monthly liabilities, it was apparent that they had a budget deficit because of their mortgage payment. Zack proved to the lender that the Smiths would be able to sustain a modified mortgage payment. The lender offered a “step rate” 5-year (interest only) modification. This type of modification will give the Smiths 5 years to determine their family’s best course of action in the long term. SFHDC was able to prevent the Smith’s home from foreclosure, and negotiated a payment savings plan over the next 5 years of nearly $140,000. They are elated at the efforts of their dedicated housing counselor Zack and the free services provided by SFHDC.
