#3    The Situation:

An individual homeowner with part time employment, and retirement income was advised by her doctor that she would either need urgent back surgery or be confined to a wheelchair ongoing.  The home owner chose surgery and was unable to work for approx. 6 months.

During this time, the home owner became behind with many of her creditors, however continued to make her mortgage payments. Because of this financial difficulty, many payments arrived late to her mortgage lender.  Due to the increase in late fees adding up, and the payments continually arriving late, her mortgage lender started the foreclosure process....

Because of her history of late mortgage payments, and her current credit scores, the homeowner could not qualify for refinancing with a conventional mortgage lender.

The appraised value of the home was approx. $430,000.

The home owner owed approx. $144,000 on her mortgage.

The home owner also owed approx. $41,000 in consumer debt.

(The home owner was offered a Reverse Mortgage with Countrywide Home Loans for the amount of $280,000.  The home owner did not feel that this was a good option because her house was appraised at $430,000.)

The Action:

The homeowner was introduced to an Equity Lender that completed a loan and paid off her current mortgage, as well as her $41,000 in consumer debt. This lender prepaid 12 months of payments out of her the loan, making the first payment from her due in one year.  (This was done to give he homeowner ample time to regain her financial footing and improve her credit.)

The homeowner received credit repair services to help correct the negative information listed on his credit report and to help improve her credit.

The homeowner is still working part time and receiving retirement income. She also has very little monthly debt in addition to her upcoming mortgage payment.

The Result:

After one year, the homeowner will have recorded 12 on time mortgage payments with the Lender.  Her credit scores will have improved and she should then qualify for a loan with a conventional lender, if desired.

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