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 HUD.gov U.S. Department of Housing and Urban Development HopeNow.com Support and Guidance for Homeowners |
Case Study #8House Value: $298,000 Total Mortgage Balance: $286,000 Payment Status: 2 months behind Current Total Mortgage Payment: $2,890 P.I.T.I.* Loan Type: 40 year Fixed at 10.00% Hardship: The clients purchased the house in 2006 under the impression that the housing market would continue improving, and they could sell the house at a profit if they could no longer afford the payments. As the economy declined, the clients saw a decrease in work hours. No longer able to sell their house at a profit, our clients were forced to rent out the house and stay with their relatives. Lender's Proposal: Interest-only payments starting at 3.625%, adjusted annually up to a maximum of 8.00% for the next 10 years. The lenders also agreed to forgive the past due amount. New Payment: $889 interest-only Total Monthly Savings: $2,001 Time from submission to acceptance: 35 days * Principal, Interest, Property Taxes and Homeowner's Insurance |
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