This is an emergency loan application to Stop a Home Foreclosure that is not uncommon at all these days, but yet a heart wrenching situation to say the least. This emergency funding was ultimately applied for because of medical costs, and disability expenses. As you read this applicant’s request for funding, you can see how an entire family is fighting to keep their house, and it’s only because the refinance home equity financing was set at a floating rate, causing their interest to balloon.

If this family does not come up with $9,000 very soon, they will lose their house. We at CLF are trying to work as fast as possible to help them sort out this situation and keep their house and stop the foreclosure. A person with a colder heart would say that this family has not managed their personal finances well, set aside emergency funds for a rainy day, made a bad refinancing decision, and failed to secure their house.

I would not say that.

In this applicant’s case, they have a full time job in the family that pays well, and they have disability income paid to them every month for two other family members. They may be able to get a disability loan as well for living expenses, but right now they are at a critical juncture where they need emergency funding ASAP.

After reading through this application form, you have to ask yourself a few hard questions. One, is there anyone else in the family that can give them a quick loan to stop the foreclosure, and two, is there a local bank in the Salinas area that could grant them a loan at a reasonable interest rate that is not a predatory loan. Very sad to see this family in such dire straits.

I have good news at the bottom of this piece regarding their request for emergency financing, and I only wish that more borrowers and applicants could be lucky enough to avoid their foreclosures and stay in their homes.

As a side note, notice in this application that they could not remortgage with a conventional lender, and they could not get approved for the Obama Administration’s Federal Modification Program. There needs to be some serious changes made in America.

Type of Loan : Emergency Funding to Stop Home Foreclosure

Why do you need a loan? : I am no longer working for the school district I had to leave for medical reasons, I had injured my hand which caused nerve damage. I was taking care of my grandmother with Alzheimer’s when Kevin my son (who is now almost 15) was in kindergarten. She has since passed, and we had to refinance our home (which was paid for) to pay for her last few months as she had to go into a nursing home for medical purposes.

Ernie and I moved out of her house and my mother moved in, then my mother needed our help as she was disabled and we moved back in. We pay the bills and I take care of her. We are now facing foreclosure and have to have $9,000 within the week (the foreclosure date is August 14). I have tried every avenue I can. We were able to refinance the first time (my mother did) since the property was in my grandmother’s name.

We have no credit, so we are not able to get a conventional loan, we can not refinance and we can not get the “federal modification program loan set forth by the Obama administration via the Stimulus Recovery Act”, my mom got the Adjustable Rate and that is how we ended up in this mess along with me not working, but Ernie works full-time plus I get medical unemployment now. I would be willing to pay you interest and sign an agreement if you could find it in your heart to help us out. There are 6 of us living here and Andrea is pregnant (due Sept 21). I have been praying and I am praying that you can help us out.

How Much Do You Want To Borrow? : Between $9K – $10K

Length of Employment : Under 6 Months

Time at Address : Over 5 Years

Age : Over 30

Anything else that would help us get your loan approved : I currently receive medical unemployment, I take care of my disabled mother.  My husband is a sheet metal mechanic, my mother receives SSI and SSD all these incomes would be combined.  My husband works full time and has been employed for almost 3 years.

Sex : Female

Marital Status : Married

Ever Claimed Bankruptcy? : No – never

What State and City is your primary home address in? : Salinas, California

Have you checked your credit report? : No

Would you consider your credit rating to be? : Poor

Collateral? : No

Down Payment? : No

If down payment, how much? : I’m sorry, but we do not have any kind of down payment for this loan. I hope this not stop us from getting approved.

Do you a have co-signer or co-borrower? : No

Employment Industry, Title, Experience, Background – All info is secure! : I currently receive medical unemployment, I take care of my disabled mother.  My husband is an airline employee and my mother receives SSI and SSD – all of these incomes would be combined.

Emergency Loan for the Purpose of Ceasing Foreclosure Proceedings – Loan Breakdown

Assuming that the requests loan is a maximum of $9,000 dollars with no collateral, bad credit, and no down payment, we have to assume that all lenders would be charging an APR between 12% and 15% – and that would be a conservative estimate. We can assume that there is very little home equity left in the property too. We will configure this foreclosure financing to be paid back in full over a period of 3 years. For a loan as small as nine thousand dollars, a 3 year term would be pushing it. Most banks would only go as far as 2 years for this kind of lending. This is really a short-term loan.

Principal Loan = $9,000
Length of Term = 3 Years
Interest (APR) = 12%
Payment Schedule = Biweekly

Emergency Foreclosure Stoppage Loan at 12% – Biweekly

Total Amount to be paid: $10,640.76
Total amount of interest $1,640.76
Payments: $136.05

With this loan the total interest over the 3 year term comes to roughly $1,600. The monthly payment responsibility is just over $270 dollars, which is affordable as long as no other family members lose their monthly income during the term of the financing. The last thing they need is to start defaulting on this loan.

2nd Payment Option for Emergency Foreclosure Loan

The borrower(s) have a second option for repayment, and that is to convince a bank to allow the loan to be spread out over a longer period. We will pay back the loan for a longer term at five years, but the lender insists on a 15% APR on the note.

Principal Loan = $9,000
Length of Term = 5 Years
Interest (APR) = 15%
Payment Schedule = Monthly

Emergency Foreclosure Stoppage Loan at 15% for 5 Years – Monthly Payments

Total Amount Paid: $12,430.61
Total amount of interest $3,430.61
Payments: $204.34

With this repayment option the borrowers only pay $200 a month, but the term is longer at the five years. They are paying $3500 interest over the entire life of the note, BUT they keep their house and avoid foreclosure – a small price to pay.

How You Can Avoid an Emergency Foreclosure Situation

There is always a lesson to be learned from our own trials and tribulations, and just as much to be learned from a stranger’s problems. The lesson here is to never let your payments fall behind, and if they do pay heed to the notices the bank or lender are sending you well in advance of the actual foreclosure date. To avoid foreclosure and reduce the inevitable stress on yourself and your family, jump to action and start looking for additional funding BEFORE it’s a full blown emergency situation.

At California Loan Find we get emails (and surveys filled out) all the time from family members who are on the brink of losing their homes to foreclosure. Please don’t wait to the bitter end by ignoring the notices you are getting in the mail. You need as much time as possible to find away to a get approved for loan.

If You Do Lose Your House to a Foreclosure

If you find yourself in that sad moment when you do lose your house due to foreclosure with the bank, then remember this;

• it’s not the end of the world – it’s just a new reality that you can live with temporarily, and you will rebound over time. “It’s nothing to get hung about” – it’s a time for learning, and remember that the sun still come up tomorrow and the birds are still singing.
• you are not alone – A house is only form, and their are billions of people in the world that don’t have homes – they are surviving. I’ve been there myself. There are also millions and millions of Americans that are in the same situation as you. They dust themselves off and start working toward a new plan for home ownership and financial solvency. You can do this, and you are going to be OK – OK.

In this applicant’s case, they managed to get a private loan from an employer. They kept their house and they are making low interest payments on a $10,000 loan fronted by the company and to be paid back over a 4 year period. A better repayment plan than either discussed above.

Hang in their friend.