Homeowners Benefit from Three Programs to Reduce or Eliminate their Mortgage Debt

"Re-perform to Re-finance"

To stop the foreclosure process and work towards reducing their outstanding debt, a homeowner can enter into a forbearance agreement with Scudder Bay by making a "good faith" payment and agreed upon monthly payments. Scudder Bay will then work with the homeowner to improve their credit score, allowing them to refinance their existing loan at a substantial discount to the current unpaid principal balance and arrearages. If the homeowner is unable to refinance after one year, Scudder Bay will agree to forbear for an additional year for a second "good faith" payment.

"Rent to Re-purchase"

If a homeowner is unable to come up with a "good faith" payment, they can still remain in their house by allowing Scudder Bay to take title to the property (either through a deed-in-lieu agreement or an uncontested foreclosure) and then renting the house back from Scudder Bay at a market rate for a period of up to 24 months. They will then have the option to repurchase the house at any time during the rental period at the prevailing market price as determined by an independent appraisal. Whether or not the house is repurchased, so long as the terms of the lease are met, Scudder Bay will forgive the outstanding deficiency balance.

"Financial Assistance to Re-locate"

For some homeowners, remaining in their house is simply not worth the constant stress of worrying where the next payment will come from. Scudder Bay will assist these homeowners in securing housing more appropriate to their current financial situation by providing a cash payment and relocation expenses so long as the homeowner agrees to turn title over to Scudder Bay (either through a deed-in-lieu or uncontested foreclosure) and vacates the property as agreed. Once the terms of the agreement are met, all arrearages and deficiency balances will be forgiven.

Mortgage Obligations are Paid Off or Forgiven in a Deed in Lieu of Foreclosure

Our goal is to help our homeowners avoid foreclosure and bankruptcy (with all that entails), and to provide them with a soft landing and a fresh start. The most practical solution for homeowners in this situation, and the only responsible solution for society, is to let the borrowers walk away from their unachievable mortgage obligation, usually by buying the Deed in Lieu of Foreclosure and then selling the house. (In a "Deed in Lieu of Foreclosure" transaction, the homeowner turns over title to the home in exchange for relief from debt obligation). In exchange for the homeowner's agreement to work with us to sell the home, we will wipe clean any deficiency and provide the homeowner with a release from the mortgage obligation when the home is ultimately sold.

Cash and Services to Rebuild Financial Lives

The Scudder Bay program offers homeowners a meaningful cash payment, moving and relocation services and credit counseling. Our goal is to help cooperative and deserving homeowners find a new place to live and provide them with sufficient funds to not only be able to put down first and last month's rent and security deposit, but also have enough money left over to pay down their credit card bills in order to start rebuilding their financial lives.

Our Exclusive Homeowner Debt Relief Program

In circumstances where a homeowner may have adequate credit to obtain a qualifying loan, Scudder Bay will work with the homeowner to arrange to refinance their loan from another bank for an amount much closer to the actual current market value of the home, and relieve the outstanding debt owed on the property. This program is an example of the unique way that Scudder Bay Capital tailors each individual situation to achieve a beneficial solution for our homeowners.

Please contact us to learn more about how we help our homeowners.