Refinance Mortgages
How to Refinance if You Are Facing Mortgage Foreclosure
Before a foreclosure takes place, homeowners have some options that they can pursue to avoid foreclosure. Refinancing a mortgage can help homeowners once again be able to afford payments for their home. Refinancing a mortgage also prevents foreclosure for the future as long as a homeowner continues to make the newly negotiated monthly payments. Before the formal process of refinancing a mortgage, a lender may be willing to offer you special new terms for a mortgage loan that make it possible for you to afford payments once again.
Calling the Mortgage Company - The first step to deal with refinancing your mortgage is to get in touch with your mortgage company. Be honest in discussing your financial situation with a lender, and the lender may be able to offer you a lower monthly interest rate or a reduction in the total amount of payments that you owe. After you receive terms from your mortgage company, then you should speak with the other lenders in your area. Other lenders may be able to offer refinancing terms that are more favorable than those offered by an original lender.
Learn About Specific Programs from Mortgage Loan Owners - Knowing the owner of a mortgage loan can also help homeowners take advantage of specific refinancing programs. For example, loans that are owned by Fannie Mae or Freddie Mac often have specific programs that the public may use for refinancing purposes.
Inquire About Government-Funded Programs - In addition to specific refinancing programs that are available through mortgage loan owners like Fannie Mae, there are also government programs that have been recently instituted for homeowners. To take advantage of these government programs for refinancing purposes, you will need to meet certain gross income levels. Also, a loan must be under a certain total amount in order to qualify. The Making Homes Affordable Program is one of the most popular foreclosure prevention programs that has been instituted by the government for homeowners. To take advantage of the MHAP program, homeowners must have purchased their homes prior to January 1, 2009, and the total amount of the mortgage loan must be less than $729,750.