The Smiths contacted GJHA counselors in June of 2013. At that time they were in foreclosure due to a decrease in income and poor money management skills. A 401(K) loan was a possibility but the extra payments would have put added strain on their monthly budget. We assisted them in applying for a loan modification, not requesting payment reduction, but hoping for re-aging. In order to give them extra time to work on this the counselor qualified the clients for the Colorado Foreclosure Deferment Program. Had they not received the deferment, they would have used the 401k loan to bring themselves current, which would have made it nearly impossible to receive a modification later. After 3 months of work with GJHA, the Smiths were offered a trial agreement that included a partial claim to bring them current and a modification that lowered their payment as well. Their payments dropped about $200 per month. The Smiths have taken control of their finances in order to never fall into this situation again. The reduced payments have allowed them to get caught up on other debts and to put them in a better position to remain stable.

Mr. Johnson had suffered a heart attack at the age of 42. He was unable to work for 10 months and was frequently hospitalized. He finally secured a driving job for a trucking company. At this point the house was already in foreclosure and Mr. Johnson was desperate to keep the family home. GJHA helped him apply for and secure a Colorado Mortgage Reinstatement loan. This loan brought Mr. Johnson current so that he did not have to immediately pay the arrearages in the amount of $28,000. With his new job he was able to afford the current mortgage payment. The second mortgage with a local bank was also delinquent. The Housing Counselor called and explained the situation over the phone to the bank President and was also able to have the arrearages on the second mortgage deferred as well so that Mr. Johnson could afford to make that payment monthly also.

Ms. Baker contracted a serious virus and struggled with its debilitating effects for months. She was unable to continue her work as a supervisor for a hospital and used every bit of savings to stay in her home. During this time she was also scammed out of a substantial amount of money by her care giver. When she came to GJHA for help she had been borrowing money from her sister to stay afloat. Her sister was no longer able to help her. She had plenty of equity in the property but was not yet old enough to obtain a reverse mortgage. GJHA submitted a request for modification on her behalf and continued assisting her through the process for approximately five months, only to have her application be denied. GJHA appealed the denial and the appeal was also denied. At this point Ms. Baker was desperate. She had no place to go and she was seriously contemplating drastic action. GJHA engaged her Mortgage Servicer’s Regional Escalation contact and pleaded her case. After additional review, her modification has been approved, saving her nearly $200/month and keeping her in her own home.