Foreclosure Refinance - Stopping The Loss

By Author: Nick Adama
Total Articles: 197
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One option for homeowners who seem to always miss their mortgage payments is a foreclosure refinance. In the past two years, millions of people have had their mortgage payments jump as a result of increasing interest rates. Adjusting rate mortgages have a fixed rate for the first year or two and many homeowners can more easily afford the payments at these lower rates. But this time the mortgage rate will begin to fluctuate. The mortgage rate will almost always go up. In fact, I've never seen one adjust down. And with it the loan payments also go up. The mortgage that once had affordable payments now squeezes the household budget. And then the next rate hike goes into effect. What was once a reasonable budget is now bleeding red and there is no hope for recovery. What can a consumer do to make the bleeding stop?

When a consumer realizes they are going to miss their next loan payment, they need to talk to their servicer right away. If it is a short term problem, many banks will forebear the amount for several months until you can find enough income to repay the debt. Most homeowners are willing to take on a second job for ...
... the short term to get out of their financial troubles. But, with payments beyond the family's budget, it is not always straightforward. Once rates adjust, they are not going to go back down any time soon. The home owner needs to take the first step and communicate with their bank. When the loan gets in arrears, the bank becomes more receptive to paying attention but they also get more worried about recovering the money they are losing. A foreclosure refinance to a fixed rate loan may be the answer to everybodys troubles. But many lenders refuse refinancing on a homewhen foreclosure is imminent. You may need to try to find a mortgage broker to help you find a good source for a loan.

Trying to find a foreclosure refinance can be complex. If you use a broker to try to get a refinance, you may just be racking up fees opposed to actually helping yourself out of foreclosure. Many brokers use the same lenders. You may put your application in with three mortgage brokers and all three of them may use the same lender. If you are rejected by the lender once, you will be rejected by that lender over and over. The first question to ask the broker is which banks they are intending to submit your request to. If you know that ABC Mortgage Company has already said no to your application, then ask the broker to submit your request to another bank or search for another broker. Another opinion is to send your application to lenders directly. But this can be tricky since mortgage brokering is not for the uneducated.

Even if you have been turned down from all conventional lenders, don't give up. There are non-conventional mortgage banks available that may be able to help you foreclosure refinance your home before it is actually sold at auction. Their requirements are usually less stringent than the normal mortgage companies. Keep trying to find new answers to verify that you have taken every opportunity to avoid losing your home to foreclosure. Even with credit problems due to an ongoing hardship, there are still mortgage companies out there who may give you the help you need.
Nick publishes articles for the ForeclosureFish website and blog, which offer foreclosure advice and resources to property owners at risk of losing their houses. The site contains close to 800 free articles on every aspect of the foreclosure process, what solutions can be used to stop it, and how to recover afterwards. Visit the site now to discover more and find out how you can stop foreclosure before time runs out: http://www.foreclosurefish.com/