How to Use Your Existing Mortgage to   

 Save Your Home from Foreclosure 

Here’s a surprising fact: If you’re struggling to make your mortgage payments, you may be able to refinance your home loan.  Many people who are facing foreclosure don’t realize that refinancing may be an option.    

However, not all homeowners can refinance.  As the credit markets tightened, banks became more and more conservative with their lending criteria. The new lending rules greatly restrict a bank’s options when making new loans. 

So if you’ve missed any mortgage payments, have a credit score under 720, or had a sudden a loss of income, you may not be able to get a new loan.  However, that doesn’t mean you can’t refinance, or that you don’t have other options. 

 If you’ve missed payments, your bank may allow you to borrow against your equity.  Other banks may be willing to work with you to get the rate down.  And your own bank  might agree  to a loan modification.  Be sure that you know all of your options before you decide on a course of action. 

 However, if you haven’t missed any payments yet …if you still have good credit…and you have a secure job, you may be able to get your bank to give you a new loan.  With today’s low interest rates, you may very well end up paying significantly less per month. 

Here’s what you’ll need to qualify for refinancing with most lenders: 

·         Credit score of 720 or above 

·         Proof of Income—usually pay stubs or deposit receipts 

·         Proof of employment (2 years) 

·         Last year’s tax returns (some lenders may ask for more) 

·         List of assets and liabilities 

·         At least 20% equity in your home 

    
     Of course, this information only applies to your primary residence. You may not be able to refinance vacation homes or investment properties as easily.

     However, keep in mind that the bank does NOT want to foreclose, especially on second homes and income properties. Both of these assets may be difficult to sell or manage. So be sure to ask your lender if you can work out a plan—the answer might surprise you. 

     If you’d like to talk to a highly-qualified loan officer who specializes in helping people like you, please call my office at 703-734-7045. I’ll send you a list of 3 excellent mortgage lenders whom I’ve worked with for years.  Each one of them comes highly recommended by my past clients—and I’m happy to send references, too.   

     Remember, you will get out of your current financial situation. The only questions are “How?” and “When?”.   

     Talking to your bank, as well as other mortgage lenders, is the first step in answering those two questions.  The get started, call me now at 703-734-7045 to get your free list of approved loan officers.  

     And don’t worry—there’s no cost or obligation to you whatsoever. This is a free service, and I guarantee that no one from my team will call or pester you in any way. Call today to take control of your financial situation! 

Sincerely,

Russell Arkin, CDPE
Realtor/Former Practicing Attorney
RE/MAX Distinctive
Russell@RussellArkin.com
703-734-7045