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Home Refinance In Case of Foreclosure  

 

If foreclosure looks eminent for you, you might look into some other options because there are some things you can do to stop it from happening. If you are able to pay the difference that you are overdue and then keep current from then on out, you will be able to stop the foreclosing process. If you feel like the payments are just too high for you to be able to pay each month, you might think about the pros and cons of doing some refinancing so that you will be able to stop the foreclosure. 

 

Foreclosure is sometimes thought to be a long process, taking months and sometimes even years to be complete. The truth is that the lender can begin the process of foreclosure after you have missed just one payment, and your home could be sold at auction in as soon as one hundred and eighty days from the day you missed your payment. If you can see that there will be some financial difficulty in your future, you should begin a mortgage refinance as soon as you can to hopefully get a lower payment before you start missing them. 

 

The problem with trying to refinance is that often times the foreclosure happens so quickly that you might not be able to get the mortgage refinancing done soon enough to help your situation. Also, if you have a credit score that is lower than seven hundred and twenty, you might get stuck with a higher interest rate, rather than a lower one. Your credit score will even get lowered if your mortgage is always paid on time, but your other bills are consistently late. If your credit score is too low, you might end up being able to get a bad credit mortgage when you refinance. 

 

One factor that might be a positive and a negative option is that if you owned the home for ten years and have twenty years left on your loan, you could refinance your mortgage on the thirty year mortgage so that you can have your payment lowered. This will add ten more years to the term of the loan, but your monthly payments will be lower which will make it easier for you to make them on time every month.  

 

Knowing some of these pros and cons might help you to feel more comfortable when you are in a situation where you might need to refinance your mortgage. Making sure that you have asked questions of the lender will help you so that you will be able to avoid foreclosure and stay in your home.