Foreclosure refinance - can you refinance foreclosure at all
You can refinance foreclosure and you can not - much depends on the state laws you live in, your credit history, why you are in foreclosure, and equity in your house. The WHY question is important.
How much equity you have in your house is the most important thing when it comes to foreclosure refinance. Many states provide you with redemption period during which you can try to bring your mortgage up to date.
You can try to sell or refinance. Again, your home equity or the loan to value ratio or LTV will be playing a crucial role, as even with quite bad credit scores, you can try to refinance your foreclosure - as long as your LTV is lower than probably 70% or you have at least 30% of equity.
The question is if this going to help, because the new interest rates will be high. The best thing these days is to work with your current mortgage holder.
And here the WHY comes - if you are in troubles because your adjustable rate mortgage jumped, then converting it to a fixed rate mortgage will make sense for your existing bank - as long as it can see that before you were always on time with your payments and your overall credit rating and history is decent. So the lender knows that giving you a break, will help indeed.
If you got yourself in too much debt, lost your job, etc., banks may be reluctant to help as they believe that you will be in the same situation again soon. I even hear about few cases when, while considering foreclosure refinance, some lenders look at you profession and job history to check how marketable your skills are. So it is tough out there.
Mon Jan 28, 2008 09:01AM | Copyright: www.bad-credit-advisor.com | More in Mortgage | Comments (0)
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