Avoiding Foreclosure By Refinancing Your Home

Avoiding Foreclosure by Refinancing Your Home
Most people think a​ good way to​ avoid foreclosure is​ to​ start over…..refinance the​ mortgage and just start over.
The problem is​ most people cannot refinance .​

Stopping foreclosure is​ very difficult .​
Unfortunately,​ you​ will run into all kinds of​ mortgage brokers and lenders out there who will tell you​ what you​ want to​ hear and waste your time .​
Time is​ something you​ can’t afford to​ waste when you​ are trying to​ avoid foreclosure .​
you​ only have about 4-8 months after missing your first mortgage payment until you​ lose your house .​
the​ foreclosure process varies by state and lender.
Mortgage brokers and lenders have always preyed on​ people in​ trouble .​
There is​ no way they can get you​ refinanced but they tell you​ they can help stop foreclosure .​
Why would they do that? They don’t get paid if​ you​ don’t close so why would they take your application and keep you​ from looking at​ other options? Mortgage brokers are trained to​ just bring in​ the​ business…..get as​ many applications as​ they can .​
Some companies even have sales meetings to​ enforce getting applications even if​ they don’t close .​
This would surprise you​ but mortgage companies live by the​ rule throw everything against the​ wall and see what sticks .​
you​ are in​ a​ very scary situation and you​ are treated like everyone else .​
you​ were never going to​ stick in​ the​ first place but now a​ month or​ two has gone by and you​ are even farther behind on​ the​ mortgage payments.
Some mortgage brokers or​ lenders make money off of​ you​ by taking a​ fee up front .​
They know for a​ fact no one can refinance your mortgage buy they tell you​ for a​ fee up front they will start working on​ your loan .​
Quite a​ nice business model don’t you​ think? They tell you​ everything you​ want to​ hear when you​ are trying to​ avoid foreclosure .​
They collect a​ fee because you​ believe them and they move on​ to​ the​ next unsuspecting person .​
Not another minute will be spent on​ you​ after they get your money.
Who can refinance to​ avoid foreclosure?
You need equity in​ your home .​
Depending on​ how far you​ are in​ the​ process,​ you​ need at​ least 10% to​ 25% equity in​ your property .​
the​ farther you​ are in​ the​ foreclosure process,​ the​ more equity you​ will need .​
If you​ are more than 2 payments behind and you​ don’t have at​ least 25% equity,​ it​ is​ almost impossible to​ refinance .​
Make sure when you​ are calculating the​ equity you​ factor in​ all the​ late fees and legal fees .​

Speaking of​ how far along you​ are in​ the​ foreclosure process,​ that makes a​ huge difference when refinancing .​
Once you​ are more than 90 days late on​ your mortgage,​ everything changes .​
the​ rate will dramatically change if​ you​ can even refinance at​ all after that point .​
That is​ why it​ is​ so important to​ pick the​ right mortgage broker or​ lender because if​ they are not experienced in​ these types of​ loans,​ they can take too long and you​ will pass the​ point of​ no return.
Some private party lenders may be able to​ refinance you​ to​ avoid foreclosure .​
These are typically known as​ hard money lenders .​
They decide if​ they will lend you​ the​ money personally .​
There are no underwriting guidelines .​
It is​ a​ case by case basis .​
These can be very expensive .​
the​ rate and fees will probably be so high you​ won’t be able to​ afford it.
That brings up an​ important point .​
Even if​ you​ can refinance,​ what is​ your new payment going to​ be? If you​ are having trouble making the​ payment now,​ the​ payment is​ guaranteed to​ be more because you​ are trying to​ avoid foreclosure by refinancing .​
Any loan you​ get will be expensive.
If you​ do not have equity in​ your property do not even consider refinancing your home to​ avoid foreclosure .​
I​ hope this article has helped you​ and you​ have learned something about stopping foreclosure .​
If anything I​ hope you​ have realized that very few people can help stop foreclosure .​
you​ will end up wasting valuable time and money to​ find out no one can help you.
Good Luck!
Avoiding Foreclosure By Refinancing Your Home Avoiding Foreclosure By Refinancing Your Home Reviewed by Henda Yesti on August 21, 2018 Rating: 5

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