Client discovers that husband has not made the mortgage payment in 3 months. Lender is about to start foreclosure, and she didn’t know. This was July 2015. Fast forward to July 2016: we finally are ready to refinance, because 12 mortgage payments have been made on time.  The refinance is going smoothly, but a letter comes stating that the mortgage payment is going from $2300 to $3700. Client was told by husband that there mortgage was impounded (taxes and insurance in the payment), but they were not, and he did not pay.

Yikes. Now she is under tremendous stress, since she could barely afford the increase on a teacher’s salary. We also had to help her clean up her mortgage. The mortgage had been included in a bankruptcy in 2010, and never reaffirmed. The lender, Bank of America, still had the mortgage as frozen (the law requires that), so she had no idea that until the day when we got involved the mortgage was still considered under Bankruptcy protection. We were able, through letters and documentation, to get the mortgage rating to have the reference to bankruptcy removed, and the on-time payments added to the credit report.

She is now enjoying a monthly payment of $2100 including tax and insurance, with enough cash to eliminate Bill and end this broken relationship.

Lots of struggle and scary bumps, but she got her clean slate. Ladies, do not turn a blind eye to your debts, even if you think your partner has it under control…