Foreclosure loans can be a great help if you cannot pay your mortgage when it is due. If you miss one payment, the sooner you start educating yourself the better. You probably would not enter a wild territory without examining a map of the area. It’s the same here, you need to collect comprehensive information about foreclosure loans and get acquainted with the ins and outs of the foreclosure proceedings.
A foreclosure process takes a long time and until your house is put up for sale you have quite some time to gather the money you need and establish negotiations to stop foreclosure proceedings.
Mapping a foreclosure
The foreclosure process can begin once you have been more than thirty days behind in the payments of your mortgage. While it is too soon to apply for foreclosure loans, the information you collect now will be very useful for you later on.
What you can do right now is call the lending society. This simple action could well avoid that things get out of hand very quickly. If they know that you need to renegotiate the foreclosure loan they will be able to offer you a helpful alternative.
Maybe they will suggest a loan modification plan or a new repayment plan. If you are only one or two mortgage repayments behind, taking the phone and contacting your lender company to negotiate different mortgage conditions is the best course of action.
Never ever ignore the written communications or phone calls coming from your lender company. It is the worst you can do. Understandably, you do not feel like calling your lender company, but you should gather all your inner strength and do it anyway. Tell yourself that if you do not call them now, everything will be much more difficult later on.
If the lender cannot establish contact with you and cannot negotiate a new agreement with you, they will begin with the legal foreclosure proceedings. In this case, bringing your account current would cost you a lot more money.
On top of the payments that you missed and the late fees you would have to pay to the lending company the costs to start the legal proceedings.
At this level establishing a direct line of communication with the lending company would still be in your favor. No more guessing. You would find out your position exactly, and how much money the lending society asks you to stop the foreclosure process.
Examining foreclosure loans
If in spite of your efforts you are unable to meet the financial demands of the lending company and the foreclosure proceedings are becoming too threatening, you have another option, which is finding information on foreclosure loans.
We are thinking of private lenders specialized in foreclosure loans for home buyers who have run out of options because of a damaged credit or other personal or financial situations.
In general, the loan to value ratio of a foreclosure loan is approximately 65% to 75% of the total market value of the property or house. Thus, you need a substantial equity in the house before you look into foreclosure loans.
Remember that you should be one hundred per cent sure that the lender you are working with has a very good reputation. In times of emotional upheaval you should examine the private lender even more thoroughly. There are a few unethical lenders that claim to offer foreclosure loans that could mislead you so that in the end you lose your property or house.