Foreclosure Loan - Drop Your Current Lender

By Author: Nick Adama
Total Articles: 197
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What is a foreclosure mortgage and how can it help you retain your property? A foreclosure mortgage is a loan that will take the place of your current loan. It is the kind of mortgage that many people seek when they are no longer able to make terms with their current lender. The new lender that provides your foreclosure loan will pay off your existing loan. You will then be required to make payments to the new lender instead. For those who are about to lose their home to foreclosure, this is an option that is well worth exploring.

The first choice every home owner should explore is trying to work things out with their current servicer. If you have a good reason for missing your payments and can prove the hardship, your bank {might|should|may|could| be open to working out a plan to help you catch your payments up. But you need to be careful and don't wait forever to ask for their help. Foreclosure is an expensive proposition for any bank. But if they do not see any sign that the victim wants to help with the problem, they will start making the legal preparations to foreclose on the property. For banks, it all comes down ...
... to how they can recover the highest amount of cash. For the borrowers fighting foreclosure, a foreclosure mortgage may be the best option to help them save their home.

The option to consider searching for a foreclosure mortgage is to ask your current mortgage broker for a recommendation. In the past several years, lenders and brokers have been handling millions of past due loans. As pointed out before, it's very expensive for a lender to foreclose. It is in their best interest to avoid the foreclosure process when they can. These lenders have usually built excellent relationships with banks that specialize in foreclosure lending. By getting their delinquent borrowers in touch with a lender who will help, they may see the mortgage being paid off instead of foreclosure. Another way to find a foreclosure lender is to talk to associates and friends who could be facing a foreclosure too.

Internet searches are also an option, but take care that you don't link up with a scam artist. All the foreclosures lately have provided a healthy harvest for the internet scam artist. Victims are at their most vulnerable and these cons dive in and take advantage. Be wary of any one that advertises to have the magic answer to stop each and every foreclosure. Often they involve legal shenanigans that can lead you into deeper turmoil while they skate away with your hard earned cash. If they ask for unreasonable upfront fees or for you to make your mortgage payments directly to them, run away as fast as you can. If they ask you to sign your property over to them in exchange for rent payments, then make sure you have a lawyer to verify all paperwork. All of these schemes are focused on them making money and you paying it to them.

Your mortgage servicer is going to foreclose unless you come up with a viable solution. Foreclosure mortgages can provide the homeowner with an extended period of time to pay off their mortgage as well as lower payments. This often provides the right amount of extra income to allow a struggling family to get back on its feet and save their house.
Nick writes for the ForeclosureFish website and blog, which educate homeowners on how they can avoid foreclosure and beat the bank. The site describes nearly a dozen ways to prevent losing a home, including deed in lieu, foreclosure refinancing, stopping a sheriff sale, and others. Visit the site today to get a free e-book explaining the basics of foreclosure and learn how to fight back against foreclosure: http://www.foreclosurefish.com/