Keep Your House with a Mortgage Loan for Foreclosure
Your home is probably the largest investment you'll make in your lifetime. Losing it can feel like the end of the world. When you fall behind on your mortgage payments, you risk foreclosure. What's worse is that foreclosure stays in your credit record for up to seven years, making it harder for you to buy a home and access credit in the future. Consider a mortgage loan for foreclosure if you're facing foreclosure or struggling to make timely mortgage payments. Talk to an expert at Dominion Lending Centres today to help get you on better financial path.
What Is a Mortgage Loan for Foreclosure?
A mortgage loan for foreclosure is essentially refinancing your mortgage. The first step to accessing mortgage refinancing is talking to your lender about your payments. If you feel that you'll fail to make timely mortgage payments in the following months, talk to your lender. Why? Believe it or not, foreclosure is expensive for lenders, and it's better for them to readjust your payment plan.
Usually, a lender sends several notice letters before the beginning of the official foreclosure process with their legal department. You can pre-empt foreclosure by refinancing your mortgage or catching up the arrears all at once.
What Are the Benefits of Taking a Mortgage Loan for Foreclosure?
Accessing the Equity in Your Home
Since you've been making payments for your mortgage, you may have built up considerable equity in your home. A mortgage loan for foreclosure helps you tap into your home's equity and use that money to pay off your debts while keeping your home.
Debt Consolidation
Handling different debts such as credit card payments and auto loans makes it more challenging for you to pay your mortgages. A mortgage loan for foreclosure can combine your debts into one manageable payment to avoid falling behind again.
Avoiding Foreclosure Costs
Usually, after the lender sells the foreclosed house, they transfer the foreclosure costs to you, the borrower. The costs can be as high as $10,000 and only increase your unmanageable debt and leave you without a home. Refinancing your mortgage helps you avoid these costs.
Hire a Refinancing Expert
Finding a refinancing loan is a complex process, especially because you need to convince lenders to refinance your home. Hiring a mortgage broker makes it easier for you to find a willing lender and find suitable rates. A mortgage broker helps you with the following:
Appraisal
An approved appraiser must evaluate your home at the current market values. A broker helps you find a willing lender before ordering an appraisal from an approved appraiser.
Information
Mortgage loans for foreclosures are costly in terms of processing and interest rates. Working with a broker helps you make an informed decision that lowers your overall costs.
Record Collection
Lenders that are willing to refinance your mortgage require documents such as payment history and tax documents. These documents help lenders perform their due diligence. Ask your mortgage broker for a list of all necessary papers.
Long Term Planning
Ultimately, taking a mortgage loan for foreclosure is typically a short-term loan but a long-term commitment. You need a long-term plan that helps you get out of debt and make timely mortgage payments. Working with a mortgage broker enables you to create a plan that brings you back to a standard mortgage in a few years.
Where Can You Find Assistance with Refinancing?
At Dominion Lending Centres, we handle mortgage loan for foreclosures and all matters related to mortgages. Contact our brokers in Edmonton today for assistance.