Jul 13, 2009
Foreclosure Refinance - What Options Do You Have?
When your home is going into foreclosure you do not have many options. Many home owners would like to refinance at a lower mortgage rate to help them through the troubling financial time. Unfortunately, it is highly unlikely that you will be able to refinance at a much lower mortgage rate if you are on the verge of foreclosure. This does not mean that you do not have any options.
President Obama created the Making Home Affordable Plan to help American avoid foreclosure. Under this plan, home owners only have to pay a mortgage payment that is 31% of their monthly income. That is if their home mortgage is backed by Fannie Mae or Freddie Mac. Almost two-thirds of home loans are backed by one of these two so it is likely that yours is too. Call your mortgage lender to find out for sure. For more information on this part of the plan, please go to this link.
The second part of the Making Home Affordable is the refinance part of the plan. The government is giving financial lenders incentives to offer low refinance rates to those that apply. There is no way that the government can force lending institutes to actually lend money, but some of the incentives are enticing most major banks to lender at responsible refinance rates. If you are still very early in the process of foreclosure, this part of the plan might help you greatly.
Overall, if you are in the foreclosure process, you do have options. Make sure to take some time and read up on the Making Home Affordable Plan. There are many parts of the plan that can help specific home owners. President Obama does not want you to be foreclosed upon, so let him help you out!