Refinance to Stop Foreclosure Instead of Loan Modification?
Can a homeowner in mortgage default refinance to stop foreclosure instead of loan modification? In most cases, absolutely! The following brief overview of what's required to successfully pursue this alternative should give you a good general idea of which option--refinancing or loan modification--is right for you. Natalia Osorio Editor of the "Loan Modification Foreclosure" website -- http://www.LoanModificationForeclosures.com -- pointed out; The first factor involved in being able to refinance your home before it's foreclosed upon is having equity in your home. This means that you must owe less money on your mortgage than the home is currently worth. In order to refinance to stop foreclosure instead of loan modification, you'll usually need at least 10% equity in the home. If you have less than that, or don't have any equity in your home at all, then automatically loan modification becomes your better option Another thing you need to refinance to stop foreclosure instead of loan modification is decent credit (or at least it helps greatly). While mortgage refinancing programs do indeed exist for people with bad credit, they are usually costly options that only get people into bigger problems than that which they were already trying to get out of. Refinance loans for people with bad credit are also a lot fewer and farther between than they once were. It's also important to keep in mind that if you are already in foreclosure, then chances are your credit has already been affected. Refinancing is generally most successful when you are only 1-3 months behind in your payments, because that information may not have shown up on all your credit reports just yet. If you have poor credit, however, then you'll probably have an easier time stopping foreclosure using loan modification. All that having been said, even with relatively decent credit and a sizable amount of equity in your home, lenders are often reluctant to grant refinance loans to people in foreclosure because they've already shown themselves to be default risks. Because of this, even if you are able to refinance to stop foreclosure instead of loan modification, the terms of the refinance might be so undesirable that the loan modification still might be your better choice N. Osorio added. Further information about how to get professional assistance with a mortgage loan modification by http://www.LoanModificationForeclosures.comAbout the Author:
Hector Milla runs his corporate website at http://www.OpsRegs.com where you can see all his articles and press releases.Article Source: - Refinance to Stop Foreclosure Instead of Loan Modification?