Tough times have a lot of people facing home foreclosure. If your loan is in default and you have not made a mortgage payment for at least 3-4 months, you may have received foreclosure notices from your mortgage lender.

The Pain Of Facing Foreclosure

When you receive such a notice, if you are like most people your first reaction will likely be, “How did I ever let it come to this?” You may feel like you must have made some severe mistake in the past and now your life has taken a turn for the worse. This is painful to go through, to say the least.

These are understandable and very normal feelings, especially since foreclosure means the possible loss of your home. And, our homes are intimately tied in not only with our overall financial picture, but also with our sense of self-worth and “moving onward and upward” in life. The way to get out of feeling bad about a possible foreclosure is to do something about it. While each person’s situation varies and there are no magic silver bullets for everyone, in many cases you can stop a foreclosure by simply refinancing your home.

Why Mortgage Refinancing Can Stop Foreclosure?

Refinancing your home can potentially help you avoid foreclosure. There are three possible reasons why it can help your situation:

a. Refinancing can help you potentially qualify for a lower-interest rate for your home, which would reduce your monthly payments (and allow you to be able to start making your payments again.)

b. If your current mortgage has repayment terms of fewer than 30 years, refinancing at a 30-year repayment term can lower your payments by spreading them out over time.

c. If you have any equity in your home (i.e., the home is worth more than you owe on it), you can cash out some of that equity in a refinance and then apply it to paying off high-interest credit card debt; the lower credit card payments can in turn allow you to make your mortgage payments.

5 Tips For Refinancing To Stop Foreclosure

If you need to refinance to stop foreclosure, here are 5 tips that can help:

1. Consider an FHA loan: FHA loans can be ideal for people facing foreclosure. The FHA has programs for average-to-low income individuals, and FHA lenders often overlook recent glitches in your credit report in favor of taking a longer view of your credit history.

2. Know your credit score: Any lender will need to run your credit report before making a decision on your refinancing application. Knowledge is power, so research your score with all 3 of the top credit bureaus before contacting your first lender. Remove any glitches or mistakes from your report.

3. Create a list of potential refinancing lenders: You are no doubt in a hurry and time is of the essence. However, spending an extra hour or two researching at least 5 good refinancing lenders can pay off in big-time. That is because shaving just 1% off of your new interest rate could save you $50,000 or more in interest payments over the course of your loan.

4. Begin applying to the lenders: Make sure to apply each and every lender you researched. Even if the first lender offers you a better rate than you ever thought possible, it is quite likely that one of the other 4 will do even better. Follow through with your plan and apply to all of them.

5. Make sure to negotiate for the best-possible rate: Once you receive an offer from each lender, be sure to “flinch” at each offer. That means: do not accept the first one they give you. It will feel risky, but it never hurts to ask if they can do better.

Follow these 5 tips to refinance your home at the lowest-possible interest rates in order to stop foreclosure.

Author Bio: Get refinancing tips to stop your foreclosure at: Best Mortgage Refinancing Tips.

Category: Finances
Keywords: Mortgage Loans Refinance, Stop Foreclosure,Mortgage Refinance Bad Credit Loan ,loan help