In recent months, there has been public discussion and news coverage about BlueHub SUN and our use of shared appreciation mortgages. Some of this coverage has raised questions about how our program works.
Since 2009, SUN has been the only program in the country helping families repurchase their homes out of foreclosure, reduce unaffordable debt and stay where they want to be— in their communities.
Two Paths to Staying in Your Home
SUN is unique in offering homeowners two ways to remain in their homes if they are being foreclosed on:
- Buy-Back Product: If you owe more than your home is worth, we negotiate with your lender to buy the property at its distressed market value and sell it back to you at a reduced price with a mortgage you can afford.
- Shared Appreciation Mortgage (SAM): Homeowners benefiting from reduced mortgage balances agree to a SAM, a second mortgage repaid only if the home appreciates in value. This ensures fairness and enables BlueHub SUN to assist future families in need. SUN provides clear disclosures at seven points in the process, so homeowners understand the terms before making a decision.
- Refinance Product: For homeowners with equity, we provide fixed-rate refinancing to help avoid foreclosure and get back on track financially. These clients do not have a SAM.
The Measurable Impact
BlueHub SUN has delivered significant results since its founding:
- Nearly half of SUN participants have successfully exited the program with substantial equity rebuilt.
- Helped over 1,000 families save their homes for good.
- Reduced principal balances by an average of $90,275.
- Lowered monthly mortgage payments by an average of $541.
- Restored more than $67.5 million in home equity, including $45 million in Massachusetts alone.
Homeowner Experiences
The impact is best seen in the lives of families SUN has helped:
- Rose Webster-Smith, Springfield: Mortgage cut by $50,000 and monthly payments reduced by $400. Today, she has built more than $131,500 in equity.
- Sellou Coly, Springfield: SUN reduced her mortgage by $99,000 and her monthly payments by $380; since then, she has rebuilt $136,500 in equity.
- Bonnie Inserra, West Springfield: Mortgage reduced by $53,500 and payments by $650, enabling her to regain stability and rebuild $111,800 in equity.
Expert Recognition
SUN has earned the trust and recognition of housing experts and national leaders:
- Kathleen Engel, Suffolk University Law School: describes SAMs as a “critical tool” to prevent eviction.
- Molly Goodman, housing counselor: credits SUN with cutting principal balances to levels families could afford.
- PBS NewsHour featured SUN’s results in Massachusetts.
- Former Federal Reserve Chairman Ben Bernanke called SUN “an innovative strategy to prevent occupied homes from becoming vacant.”
- The Washington Post described SUN as “a national model for fighting blight.”
- Most recently, BlueHub Capital CEO Elyse Cherry joined The Codcast to set the record straight on SUN following a recent court ruling. In the interview, she explains how the program works, why it is not predatory, and how it fulfills BlueHub’s nonprofit mission.
Why SUN Matters
Foreclosure disrupts families and destabilizes neighborhoods. SUN was created during the Great Recession to break that cycle, and today it continues to give families a second chance to remain in their homes and rebuild equity.
At its core, SUN exists to do one thing: keep people in their homes.
