A Foreclosure Bailout Loan is a mortgage designed to save homeowners from having the properties being foreclosed upon by their banks. it is basically a refinance loan. The home owner takes out a mortgage to pay off the current loan that's in default.
When taking a foreclosure bailout loan strongly consider paying the points to remove the prepayment penalty. This will allow you to fix your credit and get in a better loan quicker.
Foreclosure Bailout Refinances are based on the value of your home, and how much you owe your current mortgage companies. For this reason, most of these loans require an appraisal and an additional property valuation to complete.
Many lenders will lend as soon as 1 day after bankruptcy discharges.
You want to contact one of our Mortgage Professionals as soon as you feel your home is in jeopardy, the longer you wait the more your credit becomes affected and the harder it is to get you into a more stable situation. Time is the key to saving your home.
A foreclosure bailout loan should be viewed as step one of a three step process to an affordable mortgage payment. Expect a high interest payment on this type of mortgage because of the risk factor.
Once you have your bailout loan completed and the NTS (Notice of Trustee Sale) and the NOD (Notice of Default) have been satisfied, then we maybe able to refinance you one day out of NST and NOD with one of our Sub-prime lenders and possibly cut your interest rate in half. Of course your must be minimum credit and income qualifications, check with your loan office about them.
If you don't qualify then you must make 24 months of on time new mortgage payments, you can then potentially refinance into a better interest rate.
Most foreclosure bailout loans require at least 30% equity in the home (in California outside approximately 50% LTV is required) and credit scores over 500. While many potential borrowers do not fall into this category there are some that do and can benefit from the bailout programs, contact us we maybe able to make an exception. NOTE; we get people loans with really bad credit!
Any time a mortgage goes 90 days late, banks will consider that loan in default.
A foreclosure bailout loan will be costly and typically carry a higher interest rate because the lender's risk is so high.
These loans are for business purposes or investment properties.