When the housing bubble burst and millions of families lost their homes to foreclosure, a common misconception was that these homeowners defaulted on their mortgages because of their own financial irresponsibility. Yet some of the common individual factors for borrowers falling behind on payments are curtailment of income, unexpected medical bills and divorce. AHP recently modified a mortgage for a single father who had encountered all of these issues.
When Steven went through a divorce, he had to start all over. He moved from California to Missouri where he struggled to raise his daughter by himself without any child support. When he had surgery to have a lung removed, he missed a lot of work and fell behind on his mortgage payments.
Steven was able to modify his mortgage payments with his previous lender, but said they focused on how much money he used to make rather than what he currently was making, and the modification was not very helpful. When he found out AHP had purchased his loan and was presented with different options he said it was “a good feeling”.
Before his loan was purchased by AHP, Steven’s unpaid principal balance was $54,387. Steven wanted to pay off his mortgage as quickly as possible, and will now make 30 monthly payments of $833.33 to settle his mortgage for $24,999.90. Steven still has a lot of medical bills to focus on, but is happy that he can now see the light at the end of the tunnel on his home payments.
440 S LaSalle Street, Suite 1110, Chicago,IL 60605
