You are facing the biggest dilemma you’ve ever gotten yourself into — foreclosure. What started as an investment in the form of a house is now at the risk of going down the drain. Before you lose everything you have worked hard for, here are financing opportunities to help you save your home.
One in every 1723 housing properties had a foreclosure filingin April 2017. The foreclosure rates have continuously gone down to pre-recession levels. This should make you more hopeful that you can resurface from possible foreclosure.
Hard Money Financing
Hard money loan is fast cash. And when you are under pressure, you need money as soon as possible.
This kind of financing is asset-based and is provided by private lenders and institutions. A hard money loan has higher interest rate compared to a conventional loan. However, this loan offers an opportunity for foreclosure financing while you qualify for a loan with better terms and interest.
This loan is similar to a bridge loan but hard money can be the ‘last resort’ for those owners who are in a distressed financial situation.
To set it straight, not all conventional lenders will offer you refinancing in such situations.
In conventional refinancing, a borrower needs to have good credit standing and debt-to-income ratio. Some of them, however, specialize in assisting those who are on the verge of foreclosure and discover possible financing options.
There are different refinancing programs, converting your equity into cash, lowering your interest rate, shortening or lengthening your term, or switching from adjustable to fixed rate loan.
You need to know how the program works and evaluate the advantages and disadvantages for your current financial situation. Talking to a lender will help you understand the process better and how it can help you during distressed moments.