Case Study- Janet
*3 minute read
Recently, we successfully closed a loan that serves as a prime example of our commitment to helping individuals in dire circumstances. This particular client, whom we will refer to as Janet, is a 75-year-old retired administrator who had been working part-time to supplement her income.
When the COVID-19 pandemic struck, Janet found herself abruptly laid off from her job, with no assurance of a return to work. To keep her financial ship afloat, she wisely opted for mortgage forbearance, temporarily suspending her mortgage payments. At that point, her situation remained manageable, thanks to the income still being generated by her family member, Chris.
However, tragedy struck when Chris contracted COVID-19 and tragically passed away. This heartbreaking loss left Janet in a precarious position, as her sole source of income was a meager social security payment. Consequently, she was unable to make any mortgage payments for a total of two and a half years. As a consequence of this financial strain, Janet received a dreaded notice of sale, indicating that her property was scheduled for auction on the courthouse steps in the next 30 days.
For Janet, the prospect of losing her home was an emotional and existential catastrophe. Her home wasn't merely a place to live; it was the cornerstone of her entire community and life. The thought of losing it was unimaginably distressing.
Our dedicated efforts to help Janet included several crucial steps:
Extending the Sale: We embarked on a herculean effort to secure an extension for the sale of Janet’s home. This was by no means a straightforward task, but our expertise in modification and buyer rights prevailed, granting Janet the necessary time to explore solutions.
Given Janet’s foreclosure status and the substantial equity in her property, we were able to get her approved for a reverse mortgage in a timely manner. This financial instrument didn't hinge on Janet’s credit worthiness or income, making it a viable option for her.
Before the lender would greenlight the loan, numerous repairs were deemed essential. These repairs, however, demanded more financial resources than Janet possessed. In response, we negotiated with a contractor to defer payments, to be settled at the close of escrow.
The culmination of our efforts has resulted in a transformed life for Janet. She now resides comfortably in her home, free from the burdensome weight of mortgage payments. Her property taxes remain low, having been based on her 30-year history of residence. Furthermore, we were able to negotiate a substantial cash infusion, allowing Janet to address the needed repairs to her home, ensuring its longevity and her continued peace of mind.
If you or someone you care about are in this situation or would like to learn more, contact us below.
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*Disclaimer: Janet and Chris’ names have been changed