By Admin on Feb 29, 2008 in Renting & Real Estate
Doreen F asked:
in order to avoid a foreclosure…Is this wise?
or should I do a loan modification…what’s best
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in order to avoid a foreclosure…Is this wise?
or should I do a loan modification…what’s best
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If refinancing is an option–yes! You may find it difficult in this economic environment to do that. Otherwise, you should probably think about picking up a second job. Going into foreclosure is something I recommend highly against.
greasymadness | Mar 1, 2008 | Reply
It might be wise, but it might well not be possible. If you cannot support the existing financing, you will have trouble convincing bankers to support new financing. Talk to your favorite banker for advice.
rhsaunders | Mar 3, 2008 | Reply
I need more info to give you a 100% complete answer. However some general rules are as follows
1. If your credit would support a large decrease in your interest rate then do it.
2. See if the lender will give you a mediation loan ( you basically call your lender up and say I cant make the payments and your lender will ask you a set of questions to see if you qualify for a new loan)
It is not a new loan in reality just your old loan at a new lower interest rate.
these are good options to keep the home in your name. (option 2 being the best because there is no refinance charge)
However if you cant afford the home and your lender will not work with you and your credit is poor to the point that refinance is not an option. I would suggest contacting a real estate investor in your area that may be able to help you out of your situation with some creative strategies (short sales, subject to’s etc etc etc)
Brian P | Mar 5, 2008 | Reply
If you can handle it, keep it.
The help that is supposed to be coming is for just a one house owner.
You might be able to talk to the mortgage holder and get some help like extending the mortgage, and that would lower your payment.
They might even give you a better interest rate, lowering the payment.
It certainly wouldn’t hurt to ask.
That’s FREE.
If all else fails you could sell one at a loss more than likely.
I am never afraid to ask for a better deal.
American Man | Mar 6, 2008 | Reply
Do you have a bank that is willing to do that? After devaluation of the house, how much equity do you have left ? And are you paying the two mortgages or are you falling behind ? If you are current and a bank is willing to combine the loans and extend the terms of the mortgage resulting in smaller payments over a longer span that is a good proposition. With the credit and mortgage market softening you may be able to do that.
googie | Mar 7, 2008 | Reply
DO NOT REFINANCE! if your having trouble with your mortgage you can modify your loan to put yourself in a better position. In this market it’s incredibly hard to refinance not to mention it’ll be really pricey to pay all the fees. I do loan modifications in the bay area and i assure you that it’s a much better road to take. BE CAREFUL THOUGH. There are a lot of scammers right now so make sure you go to a reputable loan modifier. If you live in the bay area I can look over your situation and tell you if a loan modification is an option. Basically how it works is I’d look over your situation and see how much in need you are and to figure out if it’d be accepted. I then forward your papers to a law firm who contacts the lender to negotiate your loan to a lower rate or sometimes lower your balance, but results are relative to the case itself. You can email me and I can give you some more info if you want. What I like about my specific office is if the law firm cannot modify the loan you get a full refund of anything that you’ve paid. And also shop around because a lot of people are overcharging for these loan modifications.
You should really look into a loan modification honestly. The cost for one is around 3500 and will be just as effective if not more effective than a refinance. The usual charge for a refinance for say a 500,000 dollar home is 5000 at the least and that’s using a very cheap loan officer that might not be experienced.
alan k | Mar 10, 2008 | Reply