subject: Bad Credit Foreclosure Loans - Immediate Solution For Bad Credit Borrowers [print this page] Author: Hector Milla Author: Hector Milla
If your home is in foreclosure, you have bad credit. Getting behind on mortgage payments is the quickest way to bad credit. You may think that because you have bad credit there are no refinancing solutions available for you. You may be surprised to learn that bad credit foreclosure loans, an immediate solution for bad credit borrowers are indeed available. Natalia Osorio Editor of the "Loan Modification Foreclosure" website -- http://www.LoanModificationForeclosures.com -- pointed out; Because your current mortgage payments, for whatever reason, have not been made as agreed, you have become a high risk for lenders. After all, lenders are in business to make money; therefore, the terms for bad credit loans take into account the high risk nature of your current situation These lenders are willing and even eager to lend on properties in foreclosure, however, they realize, statistically, there is a high degree of possibility that the new loan will default as well. Because of this, the loan to value amount they will lend on is low. For instance, loans to stop a foreclosure will not ever be any greater than 65% of the appraised value of the property, and bad credit lenders prefer to only lend up to or less than 50% of the value. What this means is that you need a great deal of equity in the property to qualify. Other than the equity in the property, the loan qualifications are few. For instance, your credit, is of little importance to these types of bad credit loans to stop foreclosure. That is the good news. The bad news, along with the low loan to value, is that the interest rates will be higher and very likely will be an interest only loan, the points will be greater, the due date for the full balance will usually be less than five years. However, the good news is these loans can close very quickly, and if you have a lot of equity in your home and you have been unable or unwilling to sell it, bad credit foreclosure loans, an immediate solution for bad credit borrowers can be an excellent choice N. Osorio added. Further information about how to get professional assistance with a mortgage loan modification by http://www.LoanModificationForeclosures.comAbout the Author:
Hector Milla runs his corporate website at http://www.OpsRegs.com where you can see all his articles and press releases.
