Special Financing Option Used to Avoid Foreclosure and Keep Your Home!
By: Dwight Brisco | Posted: 21st August 2006
According to the July 2006 press release from RealtyTrac, the leading online marketplace for foreclosure properties, their June 2006 U.S. Foreclosure Market Report shows 88.195 properties nationwide entering some stage of foreclosure during the month. This foreclosure statistic represents a 5% decrease from the previous month, but still is a 17% increase from June 2005. The report also shows a national foreclosure rate of one new foreclosure filing for every 1,311 U.S. Households during the month, with states such as Colorado, Nevada, Georgia, Texas, California, and Florida having some of the highest increases.
For those of us who are not familiar with RealtyTrac, they publish the largest and most comprehensive national database of pre-foreclosure and foreclosure properties; they are the foreclosure data provider to MSN Real Estate, Yahoo! Real Estate, AOL Real Estate, and Night Ridder Online.
For many of us, the thought of losing a home due to the death of a family member, medical emergency expenses, or job loss, is a difficult period of time. There is a tremendous amount of stress in determining what is the solution to solve this foreclosure problem, while at the same time you are being contacted by a number of different parties. For those of you who are not aware of the common financing foreclosure options, let us review them first and then focus on a little known option that is also available.
Your first option is to not ignore the letters your lender sends regarding delinquent payments. Contact your lender either via phone or mail, and explain your current circumstances; usually you will be in contact with the Loss Mitigation department and they may be able to place you in temporary payment plan (such as a Special Forbearance depending on your delinquency period and current income). Sometimes, this option only addresses the mortgage debt and doesn't take into consideration your other monthly revolving obligations.
Another option (depending on the type of loan you have), would be to contact a HUD-approved housing counseling agency. To locate a housing counseling agency nearest you, call 800-569-4287 or TDD 800-877-8339; they frequently have programs and services offered by government, private, and community organizations which could help you. This option would also depend upon the urgency of how soon you need the assistance, in relation to the sale date of your property.
We will not discuss pre-foreclosure sales nor deed-in-lieu of foreclosure, because both of these options involve relinquishing your home to settle the outstanding balance.
One of the most often used options is to accept the request from a local broker or lender to complete a mortgage refinance application (which includes running your credit report) and attempt to get you into a Sub prime Loan; this option is available for borrowers who have less than average credit. Depending on how many other lenders or brokers have tried to help your situation, they could be doing more damage than help, due to all parties running their own separate credit inquiry; most of the time, they will say they can't help you only to get an opportunity to run your credit report!
A more popular option, using a Hard Money lender. Hard Money lenders don't care about your credit, your job, or your debt, their main concern is that your property has available equity. Most Hard Money lenders have a maximum equity lending limit of 65% (some will go as high as 70%), a minimum prepayment penalty of 2yrs, and usually high interest rates ; they want to make sure that if you fail to make your new mortgage payment arrangements, that they have enough equity to sale your home and generate positive cash flow. Not all Hard Money lenders think in this fashion, but at the same time, it is a business and an option that is available with their investors.
Finally, there is another seldom heard about foreclosure financing option that's available in any part of the United States. This method is similar to the Hard Money option, in that they don't care about your credit report, current job, or monthly debts, as long as you have equity in your property. The equity maximum depends on your loan amount: less than $650K = 82%, from $650K - $999K = 78%, over $1MM = 65% - 75% based on managements approval. The only information needed is a current appraisal (within 2 months), signed authorization form, name on title, address, phone, and a current mortgage loan statement. The program doesn't have a prepayment penalty attached to the loan and they provide you with a few options to choose from; they focus on payment options that are within your current financial structure and offer fast closings.
This article is sponsored by Brisco & Associates and was written by Dwight Brisco. Brisco & Associates is a growing company that offers services in the following categories: Mortgage Consultation, Contract Mortgage Processing, Mortgage Education, and Small Business Resources. After receiving FREE Consultation and its determined that you're ready to apply for a residential mortgage loan http://mortgage911.lowerpaymentnow.com, let Dwight Brisco provide you with assistance; Dwight Brisco is licensed (01380942) by the California Department of Real Estate.
Dwight Brisco has been in the mortgage industry for more than eight years; his goal is to maintain the customer's relationship for life by educating them about the many loan programs available. If you're planning on purchasing or refinancing a home, even if you have credit problems (foreclosure), or need some guidance, please contact Dwight Brisco for a FREE Consultation. Visit our other informative sites: www.mtg-solution.com, www.freemortgage-info.com, and www.4mortgagesolutions.1st-website.com for more information.
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Tags: mail, statistic, first option, medical emergency, loss mitigation department, foreclosure properties, mortgage debt, difficult period, forbearance, delinquency, foreclosure market, delinquent payments, emergency expenses