How we helped a couple facing auction save their credit and get a fresh start.
The Martinez family had lived in their Raleigh home for 12 years. After a job loss, they fell 90 days behind on their mortgage. With 45 days until the auction date, they were desperate for options.
They had significant equity in the home but couldn't qualify for a traditional loan modification due to reduced income. They needed to sell but didn't have time for traditional listing. Their credit was already damaged and foreclosure would make recovery even harder.
We proposed a subject-to purchase: We'd take over the mortgage payments, stop the foreclosure, and pay the family for their equity. The existing loan remained in place—their credit wouldn't show a foreclosure. We closed in 3 weeks.
The foreclosure was stopped. The Martinez family received $35,000 in equity, avoided foreclosure on their credit report, and could start rebuilding. They now rent in a more affordable area while they recover financially.