Refinancing your home while you are in foreclosure is usually a scenario that is different to one when you are not facing foreclosure trouble. When your credit scores are respectable, and you are not behind in terms of monthly mortgage payments (the allowable limit is 90 days for the record), there would be a long queue of potential lenders willing to offer mortgage refinancing assistance for you at attractive interest rates and appealing terms. You would be then spoilt for choice, and could probably pick and choose in accordance to your fancy by comparing different quotes from different vendors before making your final choice.

However, when you are facing the reality of foreclosure proceedings, or if your FICO credit score falls below the magical 500 mark, or even if you have missed your monthly mortgage payments three months in a row, very few lenders would venture forward to review and approve your mortgage refinance application. Hit the four month mark, and you would most definitely struggle to find mortgage refinancing help.

If you are facing foreclosure trouble, your credit score could have taken a hit, and not to mention your mortgage loan payment record must be in disarray. Facts such as these could put off any lender from considering your mortgage refinancing application, although President’s Obama’s Mortgage Modification Program might help spur on some of these lenders to render you assistance if you are caught in this mess.

Nevertheless, all hope is not lost. If your income is sufficient to back you up, or if you can display and show proof of efforts of trying to better your credit score, you might still be in with a chance to garner a refinancing package for yourself to save your home. Or if you have a sizeable amount of equity to provide you with the financial backing that you need, you might be able to persuade a few lenders to ignore the negative credit score that you might be holding, and make them concentrate on the positives. Your existing lender might not be interested to help you refinance, but a new lender might, thus keep your options open and approach new creditors that are willing to assist you refinance your home despite the fact that you are facing foreclosure.

Considering the competitive nature of the real estate market that we are currently facing, rest assured that there may be more than a few takers. But due to your low credit scores, be prepared to be offered packages with higher interest rates, probably a bigger upfront processing fee, as well as maybe a longer duration for you to clear your mortgage loan. Considering that you are currently facing trouble managing your mortgage payments, the longer the loan term is, the better it should be for you as you would end up paying less every month. Once you successfully refinance your home, you could forget about any more foreclosure issues, especially those harassing phone calls from your lender demanding outstanding payments.

If you are not too comfortable with the idea of mortgages and refinancing going together, you actually can explore other options if you are facing foreclosure trouble and still want to keep your home. For one, you could make use of the central government’s Mortgage Modification Program — the one that was introduced by the President’s office to help ease the problems of those facing foreclosure. Or you could utilize a hardship letter, approach your current lenders and work out a repayment plan with them. Foreclosure proceedings would cause monetary losses not only to you; it proves to be the same for your lenders. Thus many would try to avoid foreclosure proceedings until there is no other option available.

There are always options available to you when you are faced with the reality of foreclosure, thus ensure that you explore all your options wisely before making a decision. Remember, Find. Learn. Save!

Author Bio: refinancing mortgage refinancing help mortgages and refinancing

Category: Finances
Keywords: refinancing, mortgage refinancing help, mortgages and refinancing