Is there such a thing as foreclosure bailout lenders?
Question:
Not in the legal sense, no. Foreclosures to lenders is the potential failure of hundreds of thousands of dollars invested so that they can turn a profit after 30 years. It is the worst possible scenario for the lender and they will do everything they can to avoid it. They are in the business of loans, not home sales. The people that can help you the best, believe it or not, is your current lender. Payment plans, short term refi's, different loan programs, etc. They will try their best to help a customer avoid forclosure. All this having been said, why would any lender take on such a failed situation. I've never heard of any legitimate 'bailout' lender. Good luck.
Yes, but they are basically legal loan sharks. Instead of losing your house now, you'll lose it later. They push the predatory lending laws to the absolute max, and that is why many of them try to use private investors...and they are just WAITING for you to miss a few payments so they can take your property.that is the entire reason they invest to start with is b/c of the extremely high default rate.
These are horrible loans for someone to get into, and I would never, ever advise these for anyone.
The poster above me is correct in saying that your current lender is your best bet...but you CANNOT ignore them. If you wait for the Sheriff's sale notice to go on your front door, they will do nothing to help you...but if you call now, they will.
Yes, there are. Many of them are also known as hard money lenders, and have pretty strict lending guidelines. Generally, though, they will take more into consideration than just your credit report when evaluating whether to loan you money or not. A lot of mortgage brokers will know a few hard money lenders, and you can take a look at the sources below for some more ideas.
Depending on how much equity is in a house, and how much it is worth, some homeowners may be able to qualify for a special kind of foreclosure loan, called a hard money loan. These are offered by specific hard money lenders throughout the country, and, although there are special costs involved in using this type of program to stop foreclosure, these lenders can close on a new loan in a matter of days or weeks. Hard money loans can be used very quickly by foreclosure victims who may be running out of time or other options.
Hard money loans are generally offered by institutional groups of private investors who pool their money together to invest in real estate. These investments make up the mortgages that they offer. Usually hard money loans are used when borrowers only have a limited amount of time to close on a loan, when they do not wish to give out their credit history, or when they plan to hold onto a property for a short period of time, or when the plan to refinance soon after closing on the property.
To qualify for a foreclosure bailout loan from a hard money lender, there are usually only two main requirements. The first is that the property must have a substantial amount of equity, usually 70% at least, and more often 60%-65%. This disqualifies many foreclosure victims very quickly, unfortunately, but there are many more who will qualify for a foreclosure loan. A related requirement is that the loan is for a certain amount or more. Hard money lenders will not give loans for less than $75,000 or $100,000 or $200,000 sometimes, because they do not make enough money at lower dollar amounts. The second requirement to qualify for a hard money loan is based on the homeowner having enough income to pay the mortgage every month. While hard money lenders are more concerned with equity than income, they will want to make sure their foreclosure clients are substantially able to make the payments.
Homeowners who do meet the requirements for these loans can expect to pay a premium for the opportunity to get a new loan to stop foreclosure. Hard money lenders often charge 4-5 points up front, which means they will take 4-5% of the loan as their fee at closing. Also, interest rates can be very high, with ranges from 11.99% all the way up to 20.00% for a foreclosure bailout loan. This is why the homeowners need to be in a better financial position and have recovered from the hardship that caused them to face foreclosure. The lender will not want to see them fall behind again, because then they lose their investment and must initiate foreclosure proceedings to take the house.
Hard money loans can be a viable solution for homeowners in foreclosure, if they are able to meet the strict requirements of this type of mortgage. While expensive, the loans are meant to provide foreclosure victims with a much-needed short term solution, give them a second chance to keep their homes, and allow them to rebuild a mortgage payment history. The aim of a hard money loan is for the hard money lenders to make a high rate of return on the investments that they make, as well as give homeowners in foreclosure one more option that can be used to stop foreclosure, if all the circumstances make the loan viable.
Good luck.
ForeclosureFish
http://www.foreclosurefish.com
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