Millions of homeowners such as yourself are suffering financially and they are desperatelylooking for mortgage help on the internet. You need to be really careful when searching for lender who offers loans for people in foreclosure because of the many scams that are out there.
What you do need to understand is that there’s no shame in having problems and hiding them just makes overcoming them harder. You have made the first great step of educating yourself and I commend you for doing that.
Some homeowners are able to obtain mortgage refinances through other lenders. However, the facts are that there are not many lenders who are willing to refinance a borrower in foreclosure, but these “hard money lenders” do exist. But be prepared to pay hefty origination fees and the highest interest rates possible.
These lenders would be your last ditch solution to your problems because they don’t mess around when it comes to being late and foreclosure. They will most likely take your home in a heart beat and rarely will offer you a loan modification.
(Scroll below and you will see our current list of lenders who offer assistance to struggling borrowers and free mortgage assistance.)
Warning: If you are this person, be careful of where you search and you ask because the loan predators are desperate too and they are out looking for fresh prey on. Many people wound up unintentionally signing over the title of their homes to so-called lenders who they thought were there to help. Don’t let this happen to you!
If you are that desperate, be prepared to pay 4-6% in origination fees and an interest rate in the 9-14% range. Also the length and terms of these home loans are usually short. 1-5 years.
If you really need a loan to avoid foreclosure, then the best net is to try and get a loan modification from your current lender.
The good news is that you shouldn’t have to use these shady mortgage bankers. “Why”, you ask?
Because lenders and mortgage servicers don’t like to foreclose on homeowners such as yourself because the cost can be sometimes greater than if they were to work with you and help you fix your loan. This is known as a loan modification or loan workout. We have plenty of free information to help you on this website and our home loans forum.
Your lender’s willingness to help assist you with your loan while you are in foreclosure depends heavily on your current ability to pay your mortgage and also on your past payment history. If you have a job and have made payments on time for the most part, then they will be willing to work with you.
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