BlueHub SUN Initiative initial response to the following lawsuit
Anthony and Margaret Oates, et al. v. BlueHub Capital, Inc., et al., Massachusetts Superior Court, Suffolk County, Civil Action No. 20-0450-H (filed 2/14/2020)
Since its inception in 2009, the SUN initiative has successfully helped more than 1,100 families facing foreclosure and eviction keep their homes, repair their credit, and rebuild equity. SUN works by acquiring foreclosed properties before residents are evicted, then reselling these homes back to the homeowner on the same day with a mortgage they can afford and an obligation to share future appreciation.
SUN has reduced borrowers’ collective outstanding mortgage principal by about $68 million and their monthly mortgage payments by nearly $42 million.
Almost all of our borrowers repay their SUN loans on time and in full. Reducing foreclosures also contributes to the neighborhood stabilization that we designed SUN to accomplish.
A few borrowers have taken a different view. They argue that they are entitled to more. We disagree.
SUN functions as an intermediary between foreclosing lenders and defaulting homeowners. We have always balanced the need to persuade foreclosing lenders to sell to us with our mission of stabilizing neighborhoods and providing foreclosed homeowners with a second chance to remain in their homes and restore their credit. We never set out to create the largest possible windfall for homeowners who had defaulted on their prior mortgages.
The SUN initiative is one part of the work we do at BlueHub Capital. Over the past 35 years, we have invested more than $2.1 billion in low-income communities around the country. We have also leveraged an additional $10+ billion from external private and public sources. The result: 21,500 affordable housing units; childcare and schools for more than 50,000 children; health care centers for more than 197,000 patients; and the benefits of clean, affordable solar energy to affordable housing developments.
We believe this lawsuit has no merit, and we will ask the courts to move swiftly to dismiss. Meanwhile, we here at BlueHub Capital will continue our commitment to fulfilling the mission we have pursued for the last 35 years: to help build healthy communities where low-income people live and work.