Foreclosure?
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Answer:
First off, all those payments you're not making? They get rolled into the balance, as does any penalties for past due payments, plus usually several thousand dollars (I've seen as much as eighteen thousand) added by the bank for their trouble in putting you into default, and then a few thousand more to pay for the trustee's sale.
Then to hit you with a whammy from the other end, the appraisal is usually as low as they can get away with. If it goes to auction, they want it to sell.
The upshot is that even homes with $200,000 or more in equity can see it all disappear in the foreclosure process. It's a better idea to execute a quick sale in most cases. At least you'll get something.
Refinancing can work, but is rarely in your best interest unless you've just found another much better job or source of income that will enable you to pay it where you could not before. Once that Notice of Default hits, the rates get putrid from those few lenders willing to do them.
Hi - Have you already received your NOD (Notice of Default), and have you gone to court as of yet? In a forclosure, the Lender will take you to court, you will be assessed late fees that run in the thousands, have attorney cost, that too run into the thousands, and the lender tacks on interest fees - you are talking roungly 10,000 + on top of your mortgage. I can show you an example of the fees if you e-mail me, of what cost are - or you can do a yahoo search on here for the information. Have you talked to your lender, explaining your situation to your Lender. Are they willing to refinance thru them, to help you out. If you file Bankruptcy, you could possibly keep your home, and re-afirm your home. Have you talked to a BK attorney?
Have you tought of refinancing? If a Forclosure has been filed on you and have already gone to court, than your Loan to value would be 66 Percent (some lenders will go up to 70 percent, and this is considered Hard Money Lender and the interest rate is very high 13 +) There is normally not a prepayment on these types of loans (ok). It is just a quick fix.
If you are 90 days late or less, you can refinance - but need to do it quickly. If you are 120 days late (lenders do look at 120 + days late as a forclosure, even if you have not gone to court). Not all hope is lost, do not know what your middle credit score is, or if you have equity in your home, where you can refinance at a lower LTV (loan to value). That is say your home got appraised at 120,000 and your qualify for 80 ltv = 96,000 loan amount.
Also, use a Broker - ok, one that underwrites for many many companies - that way the person can pull your credit one time, and lenders will go of that credit report to qualify you.
Good Luck to you.
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