Title:
Avoiding
Foreclosure by Refinancing Your Home
Word Count:
703
Summary:
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.
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.
Keywords:
avoiding
foreclosure, avoid foreclosure, stop foreclosure, stopping foreclosure, help
stop foreclosure
Article Body:
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!