You always have options, even when everything goes wrong
All information in this article is applicable only on an individual basis pending a lender’s approval and OAC.
If you’re currently facing foreclosure, our hearts go out to you. There is nothing harder to deal with as an American citizen, so we want to do what we can to help you navigate that process. The most important thing to know when going through foreclosure is simple: you have options! Despite how hopeless things might seem, you might be able to save your home through a traditional refinance loan. But one thing we want to make clear before we dive into anything is that there are unfortunately no guarantees in this process. Many lenders will be hesitant to lend to a borrower going through foreclosure, but with the right strategy, the right broker, and a little bit of luck, you can keep your home!
How can a refinance help me?
At its core, a refinance is simple. Another lender essentially buys out the existing mortgage loan on your home, and offers you another loan that is usually either larger – resulting in additional cash on hand for you – or with a lower interest rate. The way that a refinance can help in this specific situation is by having another lender buy out the existing mortgage, which will put you back in a position where your mortgage is in good standing. Generally, if you’re going through foreclosure it’s because you’ve missed mortgage payments, and the lender that provided your existing mortgage has initiated foreclosure proceedings. This will almost certainly hurt your credit score, but if you have a strong credit history you may still be able to qualify for a new mortgage. By talking to a broker and opening a conversation with a new lender, you might be able to replace your delinquent mortgage, giving you time to get back on your feet and stay in your home.
Important things to keep in mind
When trying to refinance out of a foreclosure it’s important to understand that while it can solve your problems in the short-term, it doesn’t fix the underlying reasons your home went into foreclosure in the first place. If you went through a short period of unemployment or had other short-term financial problems, refinancing out of foreclosure can be a great solution! However, if there are other more long-term reasons for your financial hardship, you may want to consider other solutions.
How do I get started?
The most important thing you can do when you’re facing foreclosure is to talk to a mortgage broker. We can help you better understand what your options are, and give you a plan to move forward. If you’re ready to talk to a mortgage broker, get in touch with us here! We’ll do whatever we can to assist you with your unique financial situation.
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