Getting A Loan To Stop Foreclosure Fire Your Current Lender

By: Nick Adama

What is a foreclosure mortgage and how will it help you keep your property? A foreclosure mortgage is a loan that will replace your existing mortgage. This is the kind of mortgage that foreclosure victims want to find when they are unwilling to cooperate with their existing lender. The new lender that supplies the foreclosure loan will pay off your current mortgage. You will then be required to make payments to the new lender instead. For those who are about to lose their home to foreclosure, this is an option that should be strongly considered.

The first choice every home owner should explore is getting a workout plan with their existing lender. If you have a good payment history, your servicer {might|should|may|could| be receptive to working out a plan to help you repay all the past arrears. But you can't wait too long before asking for their help. Foreclosure is an expensive undertaking for any mortgage company. But if they do not see any sign that the consumer wants to help with the problem, they will start taking action to take away the property. For banks, it all boils down to how they can recover the highest amount of equity. For the borrowers fighting foreclosure, a foreclosure mortgage may be the best option to help them save their home.

The place to consider looking for a foreclosure mortgage is to ask your current mortgage broker for a recommendation. In the past several years, servicers and banks have been handling millions of past due notes. As stated before, foreclosures are expensive. It is in their best interest to avoid the foreclosure process when they can. These servicers have probably established good relationships with brokers that specialize in foreclosure lending. By getting their past due clients in touch with a lender who will help, it may result in a satisfied loan, rather than a foreclosure. Another way to find a bank that may lend on a foreclosure is to communicate with co-workers and friends who could be facing a foreclosure too.

Web searches are also an option, but take care that you don't end up with a an online scam artist. Foreclosures provide a healthy harvest for the web scam artist. Homeowners are at their most vulnerable and these cons dive in and take advantage. Be wary of any person that advertises to have the magic answer to all of your problems. Often they involve legal shenanigans that can lead you into deeper instability while they skate away with your hard earned income. If they ask for unreasonable upfront fees or if they ask you to make your house payments directly to them, get out of there as quickly as possible. If they ask you to sign your house over to them in exchange for rent payments, then make sure you have an attorney to verify all documentation. Each of these scams are focused on them making money and you paying it to them.

Your lender is going to foreclose unless you come up with a good solution. Foreclosure mortgages can provide the homeowner with an extended period of time to pay off their mortgage as well as lower payments. This often provides the right amount of breathing room to allow a struggling family to get back on its feet and stop foreclosure.

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To learn more about how foreclosure works, visit Nick's website, which provides services to homeowners attempting to save their homes. Foreclosure refinancing, deed in lieu, loan modification, and bankruptcy assistance can be found, as well as information on stopping a foreclosure before the sheriff sale. You can read more about how to save your home while there is still time and find the site on the web here:

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