Company News
May 03 2007
Cheapest Way to Save Your Home From Foreclosure
When the foreclosure process has started, homeowners have several options available to keep their home. Each option entails certain fees, costs, and expenses.
With enough equity to qualify, obtaining a 2nd mortgage may be the best and least expensive option available. The advantages are:
1) You keep your existing lower interest 1st mortgage in place. It makes little sense to refi into a private or hard money mortgage at 10%+ interest if you can keep your existing mortgage. Instead just borrower enough to reinstate your existing mortgage with a new 2nd mortgage.
2) A lower loan amount means less closing costs. Closing costs can be substantial when using hard or private money. It is wise only to borrower what is absolutely neccessary in order to reduce clsoing cost expenses. You will pay only several thousand dollars when making a small 2nd mortage. This is nothing compaired to $10,000 to $30,000 in closing costs for refinancing depending on the amount needed.
3) No need to bow to the often times unreasonable demands of a workout plan from your existing lender. Your lender may offer a workout plan or Note modification in lieu of foreclosing. However, this often means doubling your monthly payment obligation for years until you are caught up. And, should you ever default on the new payment arrangement, they will hold the foreclosure sale. That's right...the sale is not typically cancelled, it is postponed from month to month.
If you are in foreclosure and need help, apply here to be matched to a hard money or private money lender in your state/area. And by all means, please email me if you have any questions.
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