Avoid Foreclosure With an Adjustable Rate Mortgage
When the housing market was really cranking along
, an adjustable rate mortgage, referred to as an ARM, seemed like an enticing way to purchase a house. Now, the original rate has reset or is about to reset and you might not be able to make the mortgage payment. It has happened to countless others. Banks realize that ARMs were not the best idea for the consumer. Financial situations change as well as interest rates. Seeing the housing market decline the past few years, banks are just as anxious to avoid foreclosure as the homeowner. That's why, for homeowners in mortgage trouble with an ARM, there may be light at the end of the tunnel. Before you let your home go into foreclosure, here are a few things to consider.
Let the bank know as soon as you know you might have problems making the payments. Avoiding the notice of default and the beginning of the
foreclosure process is important. Those with ARMs that just reset to a higher rate are often eligible for special programs through the bank that will lock-in your interest rate to an affordable percentage. This is called a loan note modification. Usually, banks will much rather do a loan note modification as opposed to a short sale or foreclosure. Ask your lender for more information and to find out the process to receive a loan note modification for your ARM.
If your bank won't do a loan note modification, there are more options available for your ARM loan. There are a lot of companies out there that specialize in ARM loan note modification and may be able to work on your behalf to secure a fixed interest rate. You might also try refinancing through a separate lender into a fixed rate mortgage, but this isn't always on option if the property value has decreased substantially or if you have limited equity in the home. Yet another option available to
avoid foreclosure is through the Federal Housing Administration (FHA). It's the FHA Secure program, which is available to homeowners with ARMs. There are some other qualifications to apply for the FHA Secure program. For those who qualify, the FHA will assist homeowners in getting a fixed interest rate and avoid foreclosure.
Before anyone goes through with a foreclosure, research is the key. Often times, you can work with your lender to arrive at a solution that is acceptable to both sides. In the case of adjustable rate mortgages, there's
extra help out there to avoid foreclosure. FHA can provide counselors that can put you in touch with the right person and programs to help out your individual situation. Save foreclosure as the last option.
Avoid Foreclosure With an Adjustable Rate Mortgage
By: Will Luker
Same Day Loans - Live Life Without Uncertainty! Loans Till Payday - Get Instant Money Before Your Payday! Payday Loans - No Teletrack, Fast and Faxless A Refund Anticipation Loan Versus Rapid Refund All About The 15-year Fixed Mortgage Payday Loans with Low Fee and No Teletracking Direct Deposit Savings Account Faxless Payday Loans Arizona Faxless Payday Loan Cheap Faxless Guaranteed Payday Loan Loans For The Unemployed No Objection For The Unemployed Faxless Payday Loan Overnight Guaranteed Approval Faxless Payday Loans Can I Get An Fha Loan If I Havent Had One Before?