If You Were the Homeowner, What Would You Do?

[David Litt]

A homeowner is 45 days away from a foreclosure auction. They’ve fallen behind six months on payments due to job loss but just landed a new job and can now afford their regular mortgage moving forward.

Here’s the challenge:

• They owe $12,000 in arrears

• They have $40,000 in equity

• The lender won’t agree to a forbearance but offered a repayment plan that’s too expensive

If you were advising this homeowner, would you:

• Help them sell the property and walk away with their equity?

• Help them explore loan modification options to stay in the home?

• Or try something more creative, like a short-term private loan to reinstate the mortgage?