You can refinance to stop foreclosure if the possibility of losing your home is frightening and upsetting you. Luckily, people in this situation do have some foreclosure refinance options that they can exercise before they actually lose their home.
However, the options available to homeowners in distress are dependent on their credit history, the situation their finances are in and what caused them to start getting behind on their payments. It will also make a difference where you live since there exist different options to refinance to stop foreclosure in different states so they are not all the same.
You need to find out what your options are where you live and talk to an experienced financial counselor about your options.
Finding Foreclosure Refinance Help
The very first thing you need to do to find out about your refinance pre-foreclosure options is find an expert in the field to help you determine what rights you have and what options you have.
One place to find such a person is at the HUD office because the HUD counselors are very familiar with the types of help you can get through the government to save your home. You can find a HUD-approved counseling agency online.
If you were in the military and got a VA loan then you should talk to someone at the Department of Veterans Affairs who can help you try to refinance to stop foreclosure and save your home.
Foreclosure Refinance Or Mortgage Loan Modification?
You may be able to refinance to stop foreclosure without completely refinancing the loan. Instead you can sometimes just alter your current mortgage to lower the payment amount. If your home is close to foreclosure because you are out of work, you had an injury or there is a medical reason you cannot work right now, they may be willing to help you out this way. In order for them to be willing to lower your monthly payment, they are going to want to see that you have previously always paid on time and that you have been in communication with them throughout this entire process.
A partial foreclosure refinance helps out not only the homeowner but the lender as well. This type of help is only available for homeowners who meet the requirements set forth by the government and the lenders. The lender is able to do this type of refinance to stop foreclosure because they can get their money back for the past due amount from a government loan offered by HUD.
This particular refinance pre-foreclosure only works when the home has been in default for between four and twelve months but not officially in a foreclosure process and if the homeowner can now pay the full payment amount again.
The worst possible situation is when you have negative equity, which means you owe more than the house could sell for in today’s market. But if your home has equity built up, then there is a good chance you can figure out a way to refinance to stop foreclosure or a mortgage loan modification plan with your mortgage lender.