Home Loan to Stop Foreclosure along with other Options
The next is really a brief but thorough take a look at taking out a home loan to prevent foreclosure along with other options available to homeowners prone to foreclosure.
Getting a brand new mortgage loan (or perhaps a refinance mortgage) requires several criteria:
- High enough credit to qualify you for any new loan
- Enough equity in the home to make it well worth the lender’s while to grant the borrowed funds (in other words-the current value of the home should be more than the amount you still owe onto it)
- A provable income that can support your monthly mortgage repayments
A lack of any of these three criteria can make it extremely hard for a homeowner in arrears or at risk of foreclosure to become approved for a new mortgage loan.
Fortunately there are more possibilities to such homeowners, not least which is loan modification. In order to qualify for loan modification, candidates must generally meet the following two requirements, at least:
- An authentic hardship that has made them unable to continue to make the monthly mortgage repayments they’d originally agreed to-including sickness, injury, job loss, divorce, a prohibitive rise in an ARM (adjustable rate mortgage)
- Proof of employment (from you and/or your spouse) that shows the homeowner’s ability, either now or perhaps in the near future, to meet their new monthly payment obligation
Loan modification does affect your credit more than a new home, so it’s not necessarily probably the most desirable method to stop foreclosure. But when comparing and contrasting a home loan to prevent foreclosure along with other options, loan modification can at any rate keep you and your loved ones in your home, and it is better of an option than filing for bankruptcy.
NOTE: By researching and comparing the best stop foreclosure loans companies in the market, you will determine the one that meets your very specific financial situation.
You are very welcome to visit the Best Loan Modification Companies website - where you can review the best resources to stop foreclosure.
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