Have you fallen upon hard times, and you’re looking at the possibility of losing your home to foreclosure. Homeowner’s worst nightmare is foreclosure. The possibility of losing your home to the bank is very real, and it’s very normal to be scared.
The first thing that you should know is that there is no need to start packing your bags right away. You should have a few months to negotiate some sort of a workable solution that will allow you to stay in your home and possibly make reduced payments.
Many homeowners are actually unaware of the fact that foreclosure mortgage refinance is a real option that can help them to save their house. It is important to determine quickly whether you are eligible for this option, assess your limited alternatives in this situation, and take quick remedial action. Mostly in this situation, a person tends to lose the confidence because it is likely that he may have faced consistent rejections from his original mortgage lending institution and probably several other creditors as well.
However, refinance in foreclosure becomes a distinct possibility when you have a sufficient home equity built up in your home. This equity can help you to come out of your debt trap and find sound refinancing options to prevent the condition of foreclosure and put your personal finance cycle back on its rails.
In order to handle situations like this, you need a lender who specializes in refinancing foreclosures. There are only a few out there, but you’ll know one when you find one, because the first question they will ask you is “If you had to sell your home quickly, how much would it sell for?”, followed quickly by the question “And how much do you owe on your first mortgage”. This is because they are trying to establish how much Equity you have in the property.
The foreclosure clock starts ticking from the day on which you receive a notice of default or on which you become 120 days past due on your mortgage payments, and it can move very quickly. Don’t forget, your first priority is to save your home, and a foreclosure refinance is considered a short term loan, usually with a fixed rate for 2 or 3 years. This gives you enough time to get your credit back together and refinance at the end of the fixed period into a much lower payment.
Don’t waste time talking to lenders and brokers who don’t know the foreclosure refinance process inside out, there are simply too many out there who will just waste your time and money. Find a special lender for your special situation, and you will have a fighting chance of refinancing in foreclosure and saving your home.