subject: Mortgage loan to Stop Foreclosure and Other Options [print this page] Mortgage loan to Stop Foreclosure and Other Options
The following is really a brief but thorough look at taking out a home loan to stop foreclosure and other options available to homeowners prone to foreclosure.
Taking out a new home loan (or perhaps a refinance mortgage) requires several criteria:
- High enough credit to qualify you for a new loan
- Enough equity in your home to make it well worth the lender's while to grant the loan (in other words--the current value of the home should be a lot more than the amount you still owe on it)
- A provable income that can support your monthly mortgage payments
A lack of these three criteria can make it extremely difficult for any homeowner in arrears or prone to foreclosure to become approved for any new mortgage loan.
Fortunately there are other options available to such homeowners, not least of which is loan modification. In order to be eligible for a mortgage loan modification, candidates must generally satisfy the following two requirements, a minimum of:
- A genuine hardship that has made them not able to keep the monthly mortgage repayments they'd originally agreed to--including sickness, injury, job loss, divorce, a prohibitive increase in an ARM (adjustable rate mortgage)
- Evidence of employment (of your stuff and/or your spouse) that shows the homeowner's ability, either now or in the near future, to meet their new monthly payment obligation
Mortgage loan modification does affect your credit more than a new home, so it is certainly not the most desirable method to stop foreclosure. But when comparing and contrasting a home loan to prevent foreclosure and other options, mortgage loan modification can at any rate help you stay and your loved ones in your home, and it is a lot better of an option than your bankruptcy filing.
