Information on mortgage refinance and payment assistance - The Bills.com Blog
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Information on mortgage refinance and payment assistance
Question: I been given the oppertunity to get my home out of forclosure with a loan modification. I have to make 2 months of down payment which is 4556.00 well thats not the problem what is, is that i will have to pay 2517.00 a month pretty much by my self. I have a husband who does not help financially. He is the reason i fell into forclosure in thefirst place. And my gut tells me that he is not going to help me out like he should the 2nd time around. I make about 4,000 a month on over time and about 2200.00 without it. I have a car note thats 555.00 tell me should i just let it go and that the 4556.00 that im suppose to give to the bank by 11/9/07 and find me and my 3 kids an apartment are pay this down payment on my home and a good chance ill be back in forclosre some time soon. I know my husband like the back of my hand we been together for 12 years we are both 30 years old and i dont think he going to change anytime soon. he works for 2-3 months at a time and quits are! get fired. I know my credit will be ruined im the only one on the title but i cant stand working any harder anymore when at the end of the day it all falls on me. PLEASE HELP WHAT SHOULD I DO ?
Answer: You should speak to your lender about foreclosure forbearance. In a Foreclosure forbearance, you are allowed to delay foreclosure while your mortgage loan is either re-written (loan modification) or to allow you to defer a few payments and get back on track.
Your lender, if in agreement, will then temporarily cease legal actions. Lenders may agree to combine your Forbearance with Reinstatement or a Repayment Plan if you know you can provide the needed funds to bring your account current by a specific date. This plan works for people who have just experienced a sudden living expense increase or income loss.
Even when in forbearance, being that the default on your mortgage is already reported to the credit bureaus, most lenders might be unwilling to fund your loan. The only way
that someone will be willing to give you a refinance is if your debt-to-income ratio is very low, or if you have a bunch of equity in your home making your loan to value below 80%. There are still some lenders who might be sympathetic to your situation and possibly offer a refinance solution.
BUT - you should always consider applying for a refinance. If you want an introduction to pre-screened mortgage lenders, Bills.com makes it easy to compare mortgage offers and different loan types. Please visit the loan page and find a loan that meets your needs at: https://www.bills.com/mortage/refinance/
Depending on your income, credit report, value of your home and the amount of your equity, you can apply with a new lender to refinance your existing mortgage. Although it might be difficult to secure new financing with a default on your existing mortgage, if you have enough equity in your home, this option might be attractive to a new lender. Although this option may likely create a loan with higher interest rates, a sizable upfront fee and a longer time for pay-off, it may be the best option for you. With your home refinanced, you will become immediately current, the foreclosure will cease and you will be able to enjoy your home. Certainly your existing lender would be happy to have their loan paid off through a refinance.
You should contact several potential lenders to discuss the loan terms they can offer you on a refinance loan. After speaking with several lenders, you should be able to determine whether or not a refinance loan is a financially viable option
for you. In case refinancing does not work out you can try these other alternatives:
A Repayment Plan - If your account is past due, but you can now make payments, the lender might agree to let you catch up by adding a portion of the past due amount to a certain number of monthly payments until your account is current.
Mortgage Modification - If you can make your regular payment now, but cannot catch-up the past due amount, the lender might agree to modify your mortgage. One solution is to add the past due amount into your existing loan, financing it over a long term. Modification might also be possible if you no longer have the ability to make payments at the former level. The lender can modify your mortgage to extend the length of your loan (or take other steps to reduce your payments).
Selling Your Home - If catching up is not a possibility, the lender might agree to put foreclosure on hold to give you some time to attempt to sell your home.
Deed in Lieu of Foreclosure - When the lender allows you to give-back your property--and forgives the debt. It does have a negative impact on your credit record, but not as much as a foreclosure. The lender might require that you attempt to sell the house for a specific time period before agreeing to this option, and it might not be possible if there are other liens against the home.
You can read more about foreclosures on our website at http://www.bills.com/foreclosure/
I hope the information provided helps you Find. Learn. Save!
Best,
Bill
www.bills.com
Also, make sure to get a free financial health check-up with Bills IQ!
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1. Posted by Karen on Thursday 31st January 2008 07:47
Is it possible to get pre-qualified for a new mortgage loan while you are in forbearance with your present mortgage company?
2. Posted by Nate on Friday 1st February 2008 14:54
A forbearance agreement is usually made for people who are having trouble paying their mortgages. You will need to check your credit to see if it has been adversely affected. The best way to find out is to call multiple lenders to see if you do indeed qualify. You apply on Bills.com, depending on the information you provide, you will be contacted by up to 4 lenders.