If someone is in foreclosure, is refinancing possible? If so, how, who, and where could they get refinancing?
Question:
Answer:
Refinancing by traditional lenders is pretty much impossible in foreclosure.
However, if your loan-to-value ratio is good (i.e. you have around 65% equity in the property) you can try to contact a 'hard money' lender. The rates are higher than banks, but they don't care about credit history, foreclosure or anything, simply ownership and LTV.
2 options - search out different lenders who specialize in hard to fund loans. You'll be looking at a higher interest rate, but you may be able to save the home.
The other option is to get it sold ASAP, rent for a period of time to rebuild your credit, then buy again and make sure you budget so you can keep it. A Realtor can give you free advice to see whether or not this will be possible, or even beneficial for you to do.
Good luck!
Sean
There are many lenders in the business of refinancing those individuals that are credit challenged. They are not hard money lenders either. They recognize that some people will experience problems that are unforeseen, medical or death in families and
other hardships that could cause late payments on the mortgage to include tempera lay offs
The lenders I am talking about are called sub-prime lenders or Alt-A lenders. The rate could be higher but not necessarily so, they are still amortized for 30 years, some are called 2/28 or 3/27. They are still 30 year amortized mortgages the rates are a little lower, the number in front indicate the number of years the loan will be at a fixed rate after which they go into an adjustable, mortgage, which should give you sufficient time to get back on the right track and refinance before the adjustable period.
Find a experienced mortgage "Broker" that are familiar with sub-prime and Alt-A loans. You will need the same items to start the loan as anyone else one month of pay stubs and W-2's from each borrower, 2 years of federal income taxes, six months bank statements from all savings and checking accounts to include any stock/bonds or 401k plans at your place of employment.
I hope this has been of some use to you, good luck.
"FIGHT ON"
gate security,guarantors,and personal obligation to pay the loan from any big or small bank.
The term refinance means restructuring your home financing. This process is difficult if you are in foreclosure, but it can be done. Please consult your attorney before trying any of these techniques.
There are different methods to refinancing in foreclosure:
1. Hard Money loan- 12-14% interest rates, 2-10 points, high closing costs, and small loan amounts. They will only lend up to 65% of your homes value.
2. Refinance under a family member. This is a possibility if you have a trusted family member that would be willing to take over your monthly payments and then return the title to you.
3. Sell and Lease-Option Back- You could sell your home to an investor that will agree to lease you your home with an option to buy back. A savvy attorney can draft an agreement that will protect your interest.
4. Forbearance- This is an arrangement with your existing lender to change the terms of your loan. Most creditors look at this as a foreclosure.
Hopefully this helps. Feel free to email me if you need more answers.
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