Foreclosure is something that no homeowner wants to face. Unfortunately, with traditional mortgage options in the market, this can happen even to the best of payers due to unexpected circumstances. Thankfully, projects like ETHi Token can turn this around with our drive for ‘Decentralized Common Sense’ in homeownership.
One of ETHi’s recent successes involves saving a family from losing their home. Nearing foreclosure, this homeowner contacted us looking for options to deal with their concern as soon as possible. See how ETHi works in a practical sense.
The Background
The homeowner was financing his property through a mortgage option provided by a traditional lender. Like most, he made constant payments and was in good standing with his mortgage.
When the pandemic started, he was advised by the lender of the deferment setup for the home mortgage. With the situation at that time, he felt relief that he wouldn’t have to worry about making payments during those troubling times.
That is until he saw his mortgage statement a few months later.
The Challenge: Ballooning Balance
Shock and disbelief were understatements when he saw the bill after the deferment period ended. Believing it to be a mistake, the homeowner contacted the lender to understand why his mortgage bill was that high.
During the conversation with the mortgage rep, it was revealed that expectations were not properly set with the homeowner. Instead of gradually adding the payments from the skipped months, the lender compiled all the missed months into one charge, resulting in a large balance. Plus, the balance will accrue interest that will be added on top of it if it’s not fully paid.
The combination of the huge past due, the growing interest, and still needing to make monthly payments on the mortgage seemed too daunting for this homeowner. And with the economy recovering from the pandemic, getting up to date was becoming more of a struggle. The situation became so critical that his home faced foreclosure, potentially leaving him and his family without a proper shelter.
The Solution: ETHi Token’s Decentralized Common Sense
This is where ETHi comes into the picture. Fully understanding the situation, we purchased the property using funds available from ETHi Token investors and closed the deal within seven days.
After securing the property, we placed it under a trust with the homeowner as a beneficiary using the Ijara CDC sharia-compliant structuring process. This setup clears all outstanding debt from the previous mortgage, with the homeowner only making monthly payments to the trust to eventually gain ownership of the home again.
How ETHi Gets It Done
Unlike traditional mortgages relying on established guidelines and tons of paperwork, ETHi focuses on ‘Decentralized Common Sense.’ This revolutionary concept means that we look at what matters most – the homebuyer’s capacity to make rent payments towards the home.
In this situation, we know that the homeowner can make monthly payments without being encumbered by the total deferred amount they were asked to pay in full. Instead of punishing a good and honest homeowner, we want to give them another chance to secure their home – that’s the power of ETHi.
This is only one example of what ETHi can do – and it’s all thanks to those who believe and support the project. Want to be part of this revolution in homeownership? Buy ETHi tokens now to join the push for Decentralized Common Sense!
