Foreclosure loans are the last stop options for many homeowners facing the loss of their house because of inability to keep up with typical mortgage payments. For consumers who have hit financial hardship through job loss, illness, and other unexpected financial setbacks, a foreclosure loan can be the only way to save their house. The most important thing to do when it is apparent that mortgage payments may have to be skipped is to contact the lending source early while something can still be negotiated. In today's market, lenders are not anxious to take back a house and will work to help the owner save their place of residence. It is to their advantage as well for the owner to save the house with another type of financing. Lending companies are not anxious to gain the property because they could miss up to a year's worth of mortgage payments while the house sits through financial processing.
The source loses money on foreclosures and would rather help the homeowner find a way to keep the house. Foreclosure loans are basically programs that are either restructured or refinanced to allow homeowners to more likely meet monthly mortgage payments. they require for lengthier pay off terms and perhaps higher interest because of the refinancing process. It is difficult to qualify for a foreclosure loan without at least 30% of equity in a house, however. Qualification for the programs still need a measure of collateral in the equity in order to assure lending sources of repayment in case of repayment default. Lending sources, however, will work with any homeowner to establish the best payment terms including interest and refinancing charges in order to assure pay off of the mortgage. "Let us hold fast the profession of our faith without wavering; for he is faithful that promised." (Hebrews 10:23)
In cases that a homeowner cannot offer at least 30% equity in the property, there are a few last ditch financial options available. The original lending source may still be able to help a homeowner who does not qualify for a foreclosure loan. Some homeowners may even try to get approval for a personal or unsecured funding program in order to make a few mortgage payments. Unfortunately, when a few mortgage payments are missed, a homeowner's credit report begins to deteriorate making it difficult to get any other financing. Foreclosure loans can be timely and help to salvage the family home, if applied at the appropriate time. Be sure to inform the lending source when one knows the mortgage payments have a chance of not being paid. Lenders are more likely to extend a foreclosure loan so their time and money is not lost in trying to recover their investment.
http://www.christianet.com/refinancemortgage/foreclosureloans.htm
Tuesday, June 26, 2007
Foreclosure Refinancing
Foreclosure refinancing can help homeowners avoid losing their home if they have recently become default in mortgage payments. This often happens when people have taken on unexpected financial burdens or have been laid off from a job. Fortunately, there are a variety of refinance options to help homeowners. Before they pick the right one, homeowners should take the time to pray for God's direction. "Lead me, O LORD, in thy righteousness because of mine enemies; make thy way straight before my face" (Psalm 5:8).
Foreclosing can be an expensive endeavor for a bank to pursue, so before seeking foreclosure refinancing elsewhere, consumers need to check with their bank to see if there are any available options for amending the current terms of their loan until things improve financially. Some lenders may be willing to temporarily suspend proceedings if the homeowner agrees to a repayment plan in which payments are more than the regular mortgage payment for several months to catch up.
Since many people do not have the funds to pay extra payments monthly, a different option with the lender is a Loan Modification. Basically, all of the default payments are added to the end of the loan or distributed across the span of the loan, making the immediate impact upon the borrower's finances minimal. Consumers simply begin making normal mortgage payments again just as before. Loan Modification is an option that can only be exercised once during the term of the loan.
Homeowners who are unable to work with the current lender to avoid foreclosure must evaluate other foreclosure refinancing options. First, they must decide whether or not the home should be held on to. The homeowner needs to anticipate being able to afford mortgage payments in the near future. If it seems hopeless that they will be able to again financially manage a mortgage in the near future, it is probably best to avoid the expense of a refinance loan which will only increase and delay debt problems if the financial situation does not improve. Generally, a mortgage should be no more than 40% of one's gross monthly income. Those whose mortgage is considerably out of pace with their current income might want to sell their home and use the funds to pay off the default loan.
Another option homeowners could consider involves using some of the equity established in the home to take out a second loan or home equity line of credit. These funds can be used to bring the first mortgage up to date. The homeowner will then be responsible for two mortgage payments. Becoming default on either will place them at risk of the lender foreclosing again; however, foreclosure refinancing in this way provides additional funds at lower interest rates than one might otherwise find.
Other options require homeowners to enlist the services of an attorney or foreclosure bailout service. Specialists can negotiate with their lender to settle or roll-over the loan. These services offer a variety of foreclosure bailout options depending upon the homeowner's current situation. Seeking professional legal advice can help them avoid or manage a way through a looming foreclosure.
http://www.christianet.com/refinancemortgage/foreclosurerefinancing.htm
Foreclosing can be an expensive endeavor for a bank to pursue, so before seeking foreclosure refinancing elsewhere, consumers need to check with their bank to see if there are any available options for amending the current terms of their loan until things improve financially. Some lenders may be willing to temporarily suspend proceedings if the homeowner agrees to a repayment plan in which payments are more than the regular mortgage payment for several months to catch up.
Since many people do not have the funds to pay extra payments monthly, a different option with the lender is a Loan Modification. Basically, all of the default payments are added to the end of the loan or distributed across the span of the loan, making the immediate impact upon the borrower's finances minimal. Consumers simply begin making normal mortgage payments again just as before. Loan Modification is an option that can only be exercised once during the term of the loan.
Homeowners who are unable to work with the current lender to avoid foreclosure must evaluate other foreclosure refinancing options. First, they must decide whether or not the home should be held on to. The homeowner needs to anticipate being able to afford mortgage payments in the near future. If it seems hopeless that they will be able to again financially manage a mortgage in the near future, it is probably best to avoid the expense of a refinance loan which will only increase and delay debt problems if the financial situation does not improve. Generally, a mortgage should be no more than 40% of one's gross monthly income. Those whose mortgage is considerably out of pace with their current income might want to sell their home and use the funds to pay off the default loan.
Another option homeowners could consider involves using some of the equity established in the home to take out a second loan or home equity line of credit. These funds can be used to bring the first mortgage up to date. The homeowner will then be responsible for two mortgage payments. Becoming default on either will place them at risk of the lender foreclosing again; however, foreclosure refinancing in this way provides additional funds at lower interest rates than one might otherwise find.
Other options require homeowners to enlist the services of an attorney or foreclosure bailout service. Specialists can negotiate with their lender to settle or roll-over the loan. These services offer a variety of foreclosure bailout options depending upon the homeowner's current situation. Seeking professional legal advice can help them avoid or manage a way through a looming foreclosure.
http://www.christianet.com/refinancemortgage/foreclosurerefinancing.htm
Fixed Mortgage Rate
Fixed mortgage rates are ideal for those homeowners than plan on either living in their home or retaining ownership of their home for an extended period of time, usually the typical 30 year loan life. Other factors affecting the mortgage decision of whether to purchase a fixed mortgage rate or an adjustable rate mortgage (ARM) are the length of the loan and the down payment required from the lender. The longer the loan term and the larger the down payment, the smaller the monthly payment will be. However, the longer the loan term, the more interest is paid overall. Ideally, the set percentage would be low enough to shorten the loan life, thus lowering the overall costs of interest paid.
Typically, rates are lower when a borrower's credit score is higher. The loan with this type of interest allows for the rate to stay at a fixed amount for the entire life of the loan. These types of loans are especially beneficial for those that plan on living in their home for a long period of time. Those that plan on selling their home within 5-7 years should consider the ARM in addition to the loans with fixed mortgage rates.
The ARM or adjustable rate mortgages offers a lower introductory interest percentage, but only for a predetermined amount of time (usually 2, 3, 5, or 7 years). After the allotted time period is up, the interest rate will fluctuate, either increasing or decreasing depending on the national market unlike the fixed mortgage rate. There is a cap (usually 3%) on how far the interest rate can actually fluctuate. This type of loan is great in a time when fixed mortgage rates are extremely high and/or the borrower does not plan on reselling the home or refinancing the home within the 2, 3, 5, or 7 year stipulation agreement.
These interest percentages are sometimes low, and can also be offered in conjunction with an interest only loan. Interest allows the borrower to make monthly payments specifically to interest only. This type of fixed mortgage rate requires self discipline because after a few years, the monthly interest will never decrease, because the principle is not being lowered. It is important to make regular monthly principle payments to an interest only loan when able. If the homeowner's plans on reselling the home within a few years, then the interest only fixed mortgage rates loans may be the best option with maximum savings redistributed into the updating or repair of the property. Overall, the homebuyer must seek God's guidance and blessing upon the house they wish to purchase. Otherwise, the home will be obtained in vain. "He shall lean upon his house, but it shall not stand: he shall hold it fast, but it shall not endure" (Job 8:15).
http://www.christianet.com/refinancemortgage/fixedmortgagerates.htm
Typically, rates are lower when a borrower's credit score is higher. The loan with this type of interest allows for the rate to stay at a fixed amount for the entire life of the loan. These types of loans are especially beneficial for those that plan on living in their home for a long period of time. Those that plan on selling their home within 5-7 years should consider the ARM in addition to the loans with fixed mortgage rates.
The ARM or adjustable rate mortgages offers a lower introductory interest percentage, but only for a predetermined amount of time (usually 2, 3, 5, or 7 years). After the allotted time period is up, the interest rate will fluctuate, either increasing or decreasing depending on the national market unlike the fixed mortgage rate. There is a cap (usually 3%) on how far the interest rate can actually fluctuate. This type of loan is great in a time when fixed mortgage rates are extremely high and/or the borrower does not plan on reselling the home or refinancing the home within the 2, 3, 5, or 7 year stipulation agreement.
These interest percentages are sometimes low, and can also be offered in conjunction with an interest only loan. Interest allows the borrower to make monthly payments specifically to interest only. This type of fixed mortgage rate requires self discipline because after a few years, the monthly interest will never decrease, because the principle is not being lowered. It is important to make regular monthly principle payments to an interest only loan when able. If the homeowner's plans on reselling the home within a few years, then the interest only fixed mortgage rates loans may be the best option with maximum savings redistributed into the updating or repair of the property. Overall, the homebuyer must seek God's guidance and blessing upon the house they wish to purchase. Otherwise, the home will be obtained in vain. "He shall lean upon his house, but it shall not stand: he shall hold it fast, but it shall not endure" (Job 8:15).
http://www.christianet.com/refinancemortgage/fixedmortgagerates.htm
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