Case # 1 - Property Tax Arrears

Facing financial challenges due to property tax arrears, John and Marcy, despite maintaining their mortgage payments, found themselves burdened by escalating penalties and fees. With $25,000 in property tax debt accumulating at a monthly penalty of $625 (2.5%) and an annual balloon penalty of $1875 (7.5%), the situation was becoming increasingly difficult. Although their bank offered a mortgage renewal at a high rate of 10%, they were unwilling to assist with consolidating the property tax arrears. In need of extra cash for a home renovation, they approached me for help. Despite their not so bad credit and a beautiful property, the looming threat of foreclosure prompted action. The solution involved securing a new mortgage of $275,000 at a lower rate of 8.19%, which covered the existing mortgage, property tax debt, legal fees, and setup fees. The successful outcome included a surplus of approximately $15,000 deposited into their bank account, allowing them to complete their renovations.

In a few years, with improved credit, we can't wait to help them move to a Prime "A" lender for an even lower rate!