Homeownership marks a significant milestone in the American lifecycle. A home is viewed as a symbol of stability, success, family, and the place where individuals feel most comfortable and at peace. A person’s home is often his or her largest asset, and the culmination of years of hard work and financial diligence. However, homeownership is not a static trend. Economic changes, unforeseeable financial hardships, and unethical mortgage lending practices have rendered sustained homeownership challenging for many Americans.
In most states, the foreclosure process commences three to six months after a missed mortgage payment. After thirty days of non-payment without contact with the lending agency, the borrower is in default, and the foreclosure process begins. If the borrower fails to make his or her payments current, he or she will be forced to vacate the property, and surrender it to the lending institution. The foreclosure process has devastating impacts on the borrower’s credit and tax burden, and hinders his or her ability to partake in loan-based economic activity for a period of seven years. Aside from the financial consequences of foreclosure, the embarrassment and uncertainty can significantly strain relationships and family stability.
As residential real estate investors in the Las Vegas Valley, we have recognized a coalescing trend among the majority of our tenants. That is, many tenants have lost their homes due to periods of financial difficulty, and have been compelled to rent properties in an effort to rebuild their credit with the objective of securing a loan to purchase a new property in the future. Despite the logic inherent in their efforts, such a process has several pitfalls: the detrimental credit implications of a foreclosure or short-sale, and the simple fact that the individuals have been forced out of their homes.
We have a better solution. The Homeownership Sustainment Group LLC (HSG), strives to ensure that temporary financial hardships do not put our clients’ current and future prospects of homeownership in jeopardy. Specifically, our property acquisition team locates homeowners who have struggled to pay their mortgages in a timely manner, and we explain how we can help them stay in their homes permanently while reducing their mortgage related obligations. This process has been exceedingly beneficial for our clients as a result of their improved financial situations while participating in the HSG Leaseback Program ©, and their financial health thereafter.