Is it Possible to Refinance While House is in Foreclosure?


Is it possible to refinance while house is in foreclosure? Yes, it is. The actual foreclosure process can take several months. From the time that you first miss a payment until the house is actually taken over by the lender can be eight months to a year. This does not mean that you have eight months to a year to try to work on getting yourself out of this mess. To be successful you must take action as soon as possible.

Even though your situation may seem impossible, if you are determined, there surely may be ways to save your house. A refinance while house is in foreclosure process is possible if certain criteria are met. If you have equity in your home, at least 35%, then you may have a very good chance of refinancing. If you have had a temporary financial setback, in which you have gotten behind on your bills, including your mortgage, but that situation has been rectified, you can diligently look for someone to help you.

First, start with your current mortgage company. They do not want you to lose your house because they do not want to take responsibility for it. Banks and other lenders are not in the real estate business so they do not want to own your house, and they will do what they can to keep you in it and keep paying the mortgage payments. If you're not too far behind on your payments, and your credit is not too bad, your current lender may be willing to give you a second mortgage to make up those missed payments and late fees. If you're in the foreclosure process you may still be able to refinance while house in foreclosure, you just need to talk to a different department in that bank. Ask to speak to the person who can make refinancing decisions on homes that are in foreclosure.

There are other options you can take with your lender to stop foreclosure. All banks have a loan modification department. This is different than the normal customer service department. Make sure you ask to speak to a representative in that department. You may not be able to until your loan is significantly past due.


Source by Reese Evans

Leave a Reply

Your email address will not be published. Required fields are marked *