While BlueHub SUN’s buy-back product may be more familiar to housing professionals, SUN also offers homeowners facing foreclosure the option to refinance into a new mortgage. Refinancing out of foreclosure is rare for homeowners with significant financial hardships. However, for homeowners with equity in their homes, SUN may be able to offer a new affordable mortgage to allow them to keep the property and avoid eviction. SUN’s refinance product does not have a shared appreciation mortgage because the homeowners pay their prior mortgage in full and without the reduction that leads to the shared appreciation requirement.
Two of the homeowners SUN helped are Lauren Taylor* and Kevin Russell*. Both had unique and complicated financial situations when they applied to SUN. SUN’s adaptive strategies to mortgage financing allowed it to overcome Taylor’s and Russell’s extenuating circumstances, give both a second chance to stay in their homes and increase their home’s equity. Here are their stories.
A Single Mother Works with SUN to Save her Home and Equity
Lauren Taylor, a 45-year-old single mother of three was not new to homeownership when she faced financial difficulties and a home equity line of credit (HELOC) balloon payment.
"I’ve been a homeowner since I was 24 years old, and I paid off my first home with the same credit union I financed this one with," Taylor recounted, emphasizing her longstanding responsible homeownership. Despite her careful planning, she found herself in a predicament after filing for bankruptcy, which hindered her ability to refinance. "My bankruptcy lawyer did not inform me that there would be a balloon payment I couldn’t refinance," she revealed, highlighting a critical oversight in her financial journey.
Faced with a daunting $48,000 balloon payment and unable to gather the funds while supporting her family on a limited income, Taylor was determined to keep her home. "With three kids, I have a lot of expenses, so it was impossible for me to come up with tens of thousands of dollars at one time," she explained, illustrating her challenging situation. Despite suggestions to sell her house, she resisted: " I didn’t want to be forced out of my home by the bank; I wanted to move voluntarily," Taylor insisted, prioritizing her children's stability and comfort.
In her search for refinancing options, Taylor discovered BlueHub SUN through a Google ad.
With just hours to spare, SUN was able to get Taylor refinanced with a loan of $55,000 that covered the full balloon payment she owed her credit union. It was the first mortgage refinancing deal SUN did in her state. “We closed the loan at 4:00 p.m. on June 30, 2022, and the title company hand-delivered the payment to my credit union that day. The auction was scheduled for the next morning at 10:00 a.m.,” she remembers.