Mortgage Foreclosure & Refinance Resource

As soon as word gets out that you’re facing foreclosure you may be contacted by a number of different players in the industry. Here is a breakdown of some of some of the type of folks you may hear from:

• Your Lender. Especially if you have a government backed mortgage, you may be offered multiple ways for you to reinstate your existing mortgage, reinstating an existing mortgage is a viable option and in many cases the best option.
• Scam and Con Artists. These will take your money with promises to keep the house, and provide no services and will only make your situation worse. In the worst cases foreclosure con artists will take title to your home, force you to pay them rent with the promise that they can save your home, with the result that either they save your home keeping any equity for themselves or in the alternative collect rent from you until the home is sold.
• Mortgage Brokers. If there is enough equity in your home mortgage brokers can help you refinance and stop the foreclosure by paying off your current mortgage in full. This solution often works well, but you must be careful because the interest rate and closing costs on these types of loans can be high. Due to your credit situation you will pay much more than at a bank, but some brokers may try to charge even more points or interest if they think they can get it. Keep your eyes open and a foreclosure prevention loan can save the day.
• Chapter 13 Attorneys. If you have the financial ability to complete the Chapter 13 plan and this also a valid way to save the house, just beware that many of these attorneys will be more than happy to file a Chapter 13 for you whether it is the best option or not. This should be an option of last resort unless your personal circumstances dictate this as the best solution for you. Keep away from lawyers running “bankruptcy mills”. These firms may offer low fees but will let paralegals handle your entire case, never really getting to know your situation or giving you the personal attention you need.
• Mortgage Negotiators. Professionals who can save you from foreclosure, other than those who fall into the crooks category can be quite skilled at negotiating “repayment plans”. Generally, homeowners can arrange these plans with the banks themselves. These professional foreclosure negotiators can help in cases where the people seem to be failing at getting a “repayment plan” done with the bank on their own or where the bank’s terms seem too demanding.
• Private Investors. Two very distinct groups fall into this category. The most useful for people wanting to save their home from foreclosure will be private mortgage financiers who will help arrange a new home loan, even when they have been turned down by other high risk lenders. Other investors will want to buy the house from you. Keep a sharp eye on what they are doing for you and what they want for themselves. Sometimes these people can help save your home, other times they don’t care about anyone else and depending on how they set things up they can make your situation even worse.

Remember there are many ways to save a house from foreclosure. You do not need to sell your house unless you do not want to live there anymore or you can not afford the payments even if you got a new mortgage or could catch up on the old mortgage.