subject: File a partial-claim on VA/FHA loans [print this page] One of the methods you can avoid foreclosure is by filing a partial claim on VA/FHA Financial loans. If your loan is a VA or FHA insured loan, your lender might be capable to provide a one-time payment to bring your mortgage back to current status.
Even so, there are numerous qualifications you will have to meet.
"The VA or FHA associations will tell you if you qualify and help supply assistance with your current situation. They might also have additional options to help conserve your home, or provide funding."
With a Partial Claim, your lender will receive the amount needed to bring your mortgage loan back again to current status, even so a lien will be positioned on your property until that amount is paid back in complete. This mortgage is normally interest free of charge, and can be paid when the residence is eventually sold.
How to prevent foreclosure - Refinance your house loan
Homeowners can stop foreclosure by refinancing their present house loan. Mortgage refinancing enables the borrower to consolidate the current mortgage, such as all late payments, penalties, and fees, into a new mortgage to allow the borrower to regain manage of his or her financial situation with a new mortgage, probably having a more favorable interest fee.
Refinance your mortgage - only those with good credit need apply
There are some issues to consider however. To stop foreclosure, legitimate lenders are more likely to refinance a mortgage to help a borrower who has undergone a temporary setback, but has otherwise a excellent credit rating history, and therefore most likely to pay the refinanced home loan. Nonetheless, most lenders will not re-finance if the mortgage is more than 60 days late.
Refinancing your home loan - avoid the scams
There are some dishonest loan providers who will approve lending options to people who are unable to repay, in the hope of taking the home through foreclosure if payments are missed.
"These kinds of lenders will offer new mortgages with extremely high interest rates, large points, balloon payments, prepayment penalties, and monthly payments above and beyond what the house owner can realistically afford."
There are some dishonest lenders who may delay the mortgage approval decision unnecessarily, then later deny the loan in an attempt to get you to promote the home to them, when you are the most desperate, and at a significant discount.
"I personally spoke with a lender who bragged about how he can get home owners to sign-over the deeds to their houses to him for back-payments only, and then lease the homes back to them, resulting in a complete loss of their equity. (By the way, this is illegal in California, but it happens quite often.)"
Refinance your house loan - only people with equity will qualify
Please note, refinancing your home loan will only happen if there is substantial equity in the house as the home is used for collateral on the personal loan. If you owe more than your house is worth, the very best option would be to acquire a short sale rather than attempt to get hold of a home loan re-finance to avoid foreclosure.
