Connie Saves Her Home & Gets a New Lease on Life
Connie had almost given up on all hope after two years of struggling to make ends meet and was in the process of selling her home via Short Sale when she first contacted the Affordable Housing Alliance (AHA). She fell behind on her mortgage with Wells Fargo after she experienced medical issues which limited her ability to work and earn a living. Connie exhausted her savings due to medical bills and attempting to remain current on the mortgage. Connie had resolved that she would be losing her home and would have to find a rental for herself and pet. She knew that credit issues and having a pet would make finding a rental less expensive than her mortgage was almost impossible. Connie reached out to the AHA as a last-ditch effort to save her home. She listened to our advice and submitted all the needed paperwork immediately. The request for a modification was submitted and it was approved by Wells Fargo within 30 days. Though the capitalized amount of arrears was up to $21,162, Wells Fargo was able to offer Connie a payment that increased from her original payment by only $65 per month. Connie has since advised that she has completed the trial payments, has a permanent modification and is very happy to be home. Additionally, her health has improved from her medical treatments that caused this hardship.
Samantha Credits Controlling Her Credit With Turning Things Around
Samantha contacted the Affordable Housing Alliance for guidance to purchase a home with her Section 8 Housing Choice Voucher. However, her credit score was too low to acquire lender financing. During her coaching session, the Coach reviewed Samantha’s credit report with her and showed her each collection, charge off record, and account that was closed but still unpaid, which needed to be addressed promptly to have the greatest impact on her score. She was diligent to implement the Coach’s advice and made sure those issues were resolved. Samantha and her Financial Coach also reviewed some of her bills that can be lowered such as her cable and phone bill which were very high. She was able to get both those bills lowered in time with a new phone plan and a less expensive cable provider. Samantha also was able to start saving and putting money away for emergencies. While working with her Coach, she faced a sudden challenge when she stop receiving child support. She was so committed to meeting her goals that she still was still able to put money away. After many months of hard work, she was able to increase her score above 640, which is sufficient to obtain lender financing and make some budgeting changes to save over $1,000 for emergencies. She completed the AHA’s Money Management course made free to participants by the United Way of Monmouth & Ocean Counties. The course helped Samantha understand more about credit, budgeting, and saving. Samantha was referred to homebuyer counseling to continue working toward her goal of becoming a homeowner. It was clear that the guidance and accessibility to a Financial Coach helped Samantha reach her goal.
John Saves Generational Family Home
John reached out to the Affordable Housing Alliance for assistance when he received notice his lender would be moving forward to foreclose due to him falling 7 months behind on his mortgage. He fell behind because his wife had temporarily fallen ill, shifting the full burden of both earning income and child care on him. John told his counselor he wanted to do everything to save his home because it had been in his family for three generations, and he did not want to have to make his young children change schools. Though he was self-employed, he had not had much experience in tracking his income through a Profit & Loss outside of income tax season. The counselor assisted John in reviewing his business income & expenses to create a Profit & Loss for his loan modification application. John was approved for a permanent modification and has been able to keep up with his new payments.
Sharon Overcomes Obstacles to Purchase Affordable Housing
Sharon is a young single woman who was looking to start her adult life on the right foot financially by purchasing a home and paying into equity she could someday utilize. She contacted the Affordable Housing Alliance for assistance in purchasing an Affordable, Deed-Restricted unit, enrolling in Housing Counseling and Homebuyer Education. She planned on utilizing a $10,000 Down Payment Assistance grant and already had a home in mind to purchase. She obtained a pre-approval from her lender, however, the lender became unresponsive and her Mortgage Application sat with no activity for two months. The counselor assisted Sharon in reaching out to the lender to determine the cause of the inactivity and found that the lender had been negligent in processing both her Mortgage Application and her Down Payment Assistance application. The counselor helped advocate for the client with the seller so that she would not lose the opportunity to purchase her dream home after delays outside of her control. The counselor provided the client with other lender loan products, including some with a low down payment and no Private Mortgage Insurance (PMI) required. The client selected a lender with a product with no PMI and the new lender gave her a Pre-Approval that same day. Unfortunately due to the negligence of the first lender, the client could not obtain the Down Payment Assistance program within the remaining timeframe to purchase her home. The new lender, however, gave the client a $1,500 closing credit to assist in reducing the amount she would have to bring to closing. Through the teamwork of the housing counselor, lender, and seller, the client was able to secure her purchase rather than having to start her home search from scratch.
Struggling Urban Life to Rural Livelihood
Jack and Isabella contacted the Affordable Housing Alliance for guidance to purchase a home in a rural area of New Jersey. Though they earned less than 80% Area Median Income, they had been working diligently to save up to be able to pay more than 20% of the home purchase up-front. The family planned on starting a farm and raising chickens which would provide an additional income source. Isabella did not speak English very well but she excelled in farm work, so she was excited to be able to contribute to the financial earnings of her family. The counselor discussed with them the option of buying down points so that their monthly mortgage payment would be even lower than expected. They all reviewed how to read amortization charts so that the clients could decide how many points they would buy down. After putting 30% down on their home purchase, Jack and Isabella’s total PITI (Principal, Interest, Taxes, and Insurance) housing expense is now $534. The family is now able to use more of their income toward setting up their farm and agricultural business.
Slow and Steady Wins the Race
Debra has been working in the AHA and the Financial Success Center since 2020 and initially experienced many unfortunate personal situations which made it difficult for her to improve her finances. Though she was not ready to proceed, the Coach checked in with her every couple of months until she was ready. Initially, she wanted to create a monthly budget, improve her credit and purchase a home. The Coach taught her how to use a cash flow financial tool to create her budget. Cash flow is a budgeting method to assist clients in realizing their expenses on how to work on spending their money wisely. At first, Debra had credit issues such as collections and disputes that resulted in her credit file being frozen. The coach referred her to Financial Success Center partner, Navicore Solutions, for more hands-on assistance in addressing potential settlements that needed to be arranged with her creditors. She was able to resolve many of the issues with the Coach’s guidance on how to work out settlements and repayment plans with her derogatory trade lines. Her credit score increased and she was able to budget and save over $1,000 dollars in emergency funds. This success story shows that the determination and commitment of a Coach to help shows the participant they truly have someone on their side and can make some changes to improve their financial security and independence.