When the home is under foreclosure proceeding, you can still manage to refinance as it can help you avoid losing it. Foreclosure on your home can adversely affect your credit report. Therefore, refinancing can be a better option to protect your home from the foreclosure proceedings. You can take out a new mortgage with a new loan term and you can start making payments without a single default. If you’re lucky, you can get a refinance loan on favorable terms. Therefore, you can make your monthly payment less in order to pay off the mortgage on time. However, everyone may not be able to refinance mortgage. So, if you do not qualify for mortgage refinancing, then you need to follow the steps given below.
Here are a few effective steps to refinance your home while in foreclosure:
1. When you’re planning to refinance, make sure you find the required information on mortgage refinancing. You can be eligible to refinance your mortgage, if you have 25% equity build up on your home. If you only have 15% equity on your property, then you have a chance to refinance your mortgage. The lender may consider you high risk borrower if you have less than 15% equity on your property.
2. The Homeowner Affordability and Stability Plan (HASP) offers a special program introduced by President Obama. In case you have less than 15% equity, you can still be eligible for this government plan. If your payment on mortgage exceeds 31% of monthly gross income, then you can manage to refinance. In this situation, you can also get other help to protect your home from foreclosure proceedings.
3. You can search online if you want to get help while considering mortgage refinancing. The situation may vary from state to state while dealing with mortgage refinancing. It can be beneficial to get professional help while dealing with specific situation and detail.
4. Once you’re aware of your situation and know whether you can refinance your mortgage, you can approach the lender for refinancing. Make sure you contact one lender and compare the quotes offered by different lenders. This can help you manage to get loan on favorable terms.
Therefore, you need to follow the above mentioned steps when you’re planning to refinance your home while in foreclosure. Once you manage to refinance your home, you can protect your home from the foreclosure proceedings.
This article was written by guest blogger Gabriel Knight who writes informative articles about Real Estate and Mortgage Finance.