Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTCaroline LubinskyWed, August 5, 2026 at 5:46 PM GMT+2 6 min readBenzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below.A 35-year-old software developer learned that his parents, both in their late 60s, had fallen four months behind on their mortgage after his father's work hours were reduced following a health issue. With the home he grew up in at increasing risk of foreclosure, he looked for a way to help without draining his savings or taking on another monthly loan payment.The homeowner, who had built roughly $220,000 in equity in his own home, chose to access a portion of that equity through a lump-sum home equity investment to cover his parents' past-due mortgage balance.Don't Miss:Want rental property income without fixing leaky faucets or screening tenants? Arrived lets you invest in rental homes starting at just $1001.5M+ People Work in Headsets Every Week— Here's the Company Behind ItHow Close The House Came To ForeclosureBy the time he learned about the situation, his parents' mortgage servicer had already issued a notice of default, making foreclosure proceedings a possibility if the delinquency wasn't resolved. Mortgage servicers are generally required to inform borrowers about available loss mitigation options before moving forward with foreclosure, and the Consumer Financial Protection Bureau outlines protections and resources available to homeowners facing default.His parents, however, had avoided contacting the servicer out of embarrassment, allowing the situation to become more serious than it might have otherwise.With his parents' authorization, he contacted the servicer to discuss available options. Together, they decided the best path forward was to bring the loan current immediately before enrolling in a repayment plan designed to help keep future payments on track.Trending: Colorado's Growth Story Is Creating New Real Estate Opportunities. Here's How Accredited Investors Can Explore Avenue South.Why He Didn't Want Another Monthly PaymentHe considered using a personal loan or a home equity line of credit (HELOC) to cover the $18,000 shortfall. But with two young children and a mortgage of his own, he didn't want to add another required monthly payment to his household budget, especially if his parents needed additional financial support later.Instead, he explored a home equity investment, which provides homeowners with cash upfront in exchange for a share of the home's future value rather than requiring monthly principal and interest payments.Accessing His Own EquityTerms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info