If you are currently in foreclosure, refinancing with your current lender should be one of the first thing you look into. If you are are in foreclosure or are going to be, the earlier in the process you react the better chance you have at saving you home.

You need to also understand that if you truly can not afford your current home, than you need to consider downsizing or selling and getting a smaller or cheaper home. However, a lot of homeowners financial problems are due to temporary setbacks, which with financial action and planning can often be got over.

When a homeowner is in foreclosure is means that mortgage payments have been missed and the bank has begun the process of taking the property back. Sometimes, this process can take up to a full year before the actual property is handed over. Understand that every home loan a lender or bank has is a liability and their ultimate goal is to keep you in your home and making payments and will work with you when necessary to ensure that continues. This holds true especially now as there are a record number of homeowners facing foreclosure.

Most homeowners in foreclosure need to refinance their home loan in order to get monthly payments that they can afford to pay. A lot of times people get themselves into a ARM loan (Adjustable Rate Mortgage) or a loan with a balloon payment and are not able to make the payments. If you have at least a 20% equity stake in your home, your odds of being able to refinance and end the foreclosure process are pretty good. The quicker you act the better the chances of saving your home.

Always remember that while in foreclosure there are other options you may have other than refinancing. For example you may take out a second mortgage which can cover your back payments and catch up on your other debts. These are also called foreclosure loans. These loans typically carry a high interest rate and are termed from 24 – 60 months, but can be helpful in getting your finances back on track.

As mentioned earlier the quicker you act the better. Once a homeowner is 90 or more days late on their mortgage most lenders and banks will not be willing to help you. Yet other options still remain. A home loan modification is usually only available after an account has become seriously delinquent. Another option is smaller private mortgage lenders and companies which specifically work with homeowners who are in or facing foreclosure.

-M Petrone

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