Foreclosure Loans Get Tougher With Additional Late Payments
Being realistic, if you are behind on your house payments and the lender has already started foreclosure proceedings, the chances of getting foreclosure loans to keep the house are slim. Once the first payment on the house went into late status, the credit reporting agencies were notified and when the second, third or more payments fell into late status, the credit score most likely dipped to a point where obtaining foreclosure loans is nearly impossible.
Depending on your relationship with the bank, it may be possible to obtain foreclosure loans before the mortgage goes into default status and the foreclosure process begins. In some instances, the financial institution may be willing to take on a separate loan for the past due payments, providing you can prove you will be able to make the payments on the foreclosure loans as well as maintain future house payments. Since you are already behind on some payments, the lender will be taking a risk in offering these loans and the interest rate may be somewhat higher than the mortgage rate.
When additional understanding from you lender is not possible, you may have to seek foreclosure loans elsewhere. When all else fails, it is not uncommon to get some help from family or close friends, but too often these arrangements end up with failed personal relationships if you cannot afford to pay them back. Additionally, consider if you should risk a relationship based on the same criteria with which a bank refused to lend you money.
Working To Stay Ahead Of The Game
When foreclosure seems to be inevitable, it may be possible to rewrite the mortgage note with the same lender, or if necessary to go through a different lender. Many people with an adjustable rate mortgage have found that remortgaging their home with a fixed rate loan can reduce the monthly payments. Often, these foreclosure loans are designed to not only reduce the payments but also put an end to foreclosure proceedings.
There will be associated costs with taking out a new mortgage on the home, and depending on how long you have owned the property additional inspections as well as an updated valuation will be needed before a lender in willing to ante up for foreclosure loans to save the property. You will want to add up the additional costs of rewriting the mortgage compare to the current costs to show it makes financial sense to try to save the property from foreclosure.
