You may be able to refinance your loan or apply for a reverse mortgage to save your home if you face forfeiture. Refinancing can, however, be complicated and reverse mortgages risky.
Typically, if you have not made enough mortgage payments and have bad credit, you can not refinance. While reverse loans do not need a credit rating, it is often a bad idea to get such a loan. Reverse mortgage lending is built to hold the lender home and have many other big inconveniences.
Refinancing your loan to stop forecasting
A refinance allows you to receive a new loan to repay the existing mortgage, including the overdue amount, to avoid the forfeiture. It would help if you had a steady income to qualify for home equity usually. Refinancing will help you to achieve a lower interest rate that reduces your monthly payment.
However, it can be not very easy, because you’re behind in payments, to get a better interest rate or to get a refinancing accepted if you face foreclosure. The more payments you have missed, the worse the score.
Use a reverse mortgage to avoid a forecast.
If you are not eligible for refinancing, another great option, though not necessarily a good one, is to take a reverse mortgage to repay the current loan.
With a reverse mortgage, you can get a loan based on your home equity for people 62 years of age and older. The creditor does not have to make monthly payments to the lender to pay off his loan, which is different from a traditional mortgage. Alternatively, the borrower’s loan proceeds are collected in lump sums (subject to certain restrictions), as a monthly payment or credit line. You can also receive a combination of monthly payments and a credit line. Any time the lender sends payment, the loan amount increases until the maximum loan amount is reached.
Additional ways to consider
If your mortgage payment is difficult, consider other options to avoid foreclosure. Some other choices are to adjust the loan, repair the loan, create a payment schedule, or put the property on a short sale or deed instead of a foreclosure. You may also think about selling the house and moving to cheaper apartments.
If you want to know more about the various ways foreclosures are stopped and have a case, a foreclosure lawyer is a good idea. You can also discuss various options to mitigate damage wth a HUD-approved home consultant.
For information on foreclosure defense call us at (877) 399 2995. We offer litigation document review support, mortgage audit reports, securitization audit reports, affidavit of expert witness notarized, and more.