Mary
and Jason were newlyweds. They had started
house hunting immediately following their
engagement and bought a large 4 bedroom/3
bathroom property.
The couple enjoyed the property to the
fullest extent, that is until their
adjustable-rate-mortgage (ARM) adjusted to
an interest rate that was 5% points
higher than before. Such an increase in the
monthly payments put a large financial
burden on the young couple. The burden was
so large that they had to pick and
choose which bills to pay each month so that
they would not get foreclosed on.
The strategic selection of monthly bill
payment yielded unsuccessful as they skipped
their property tax payments year after year.
Champaign county was to foreclose on their
house if they didn't pay all back taxes
and penalties.
The amount owed was close to $7,000. They
didn't have that kind of money and felt like
they were out of options. They didn't want
to sell their dream home and also didn't
want to loose the house to tax foreclosure.
When they consulted with Schwaps, the
following arrangement was agreed upon.
Schwaps purchased the house from the couple
to get them out of the bad ARM, the house
was then leased back to the couple with the
option to buy. A 2-year lease option was
structured, this arrangement allowed the
couple to get back on their feet
financially, as the new lease payment was
substantially less than the adjusted
mortgage note that they were paying, and
also they no longer had to worry about taxes
and homeowners' insurance. This move with
Schwaps saved their credit from any
extensive damage. When the option date
arrived, the couple was able to take
advantage and re-purchase their home. The
second time around they were much wiser in
selecting their mortgage, thus they avoided
another adjustable-rate-mortgage.
* The
story above is just one example of the many
ways Schwaps may serve your Real Estate
Needs |