Avoid Risk of Foreclosure

Total foreclosure actions last August,including notice of default

,scheduled auction,and repossession were made on a total of 338,836 properties;up 4 percent from July and down 5 percent from August 2009.

Refinance is also on the rise but consumers must be very wary.Many people who are victims of predatory lending have lost their homes to foreclosure.

In general,sub-prime lenders do not give you a good interest rate on the basis of equity or your ability to pay.Typically,predatory lenders trick you into burdensome fees and most include a pre-payment penalty clause that locks the borrower in for an extended period of financial torture. http://www.hud.gov/offices/hsg/sfh/pred/predlend.cfm

First step,consider what kind of loan you currently have. Do you have a fixed interest rate or an adjustable rate mortgage? If you have an adjustable rate mortgage,it would probably be a good idea to get a fixed rate because the market is very volatile right now.

If you plan to refinance your home loan-only apply if the interest rate is lower than your original mortgage. www.Bankrate.com is an independent service where you can compare interest rates by state.Next,check the lender for bad business reports before you apply.

Don't be rushed into signing and never sign an incomplete contract.Take time to carefully read it over and ask questions if you need clauses to be clarified.

The most important thing to remember when you refinance your home to get money to pay off high interest bills is that you do it.Do not be tempted to use the money for something frivolous.

The goal is to keep all your accounts paid on time and have extra money left at the end of the month for financial security.

Avoid Risk of Foreclosure

By: AttilaThiry

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