Is Refinancing Your Only Option to Avoid Foreclosure?


Au Contraire to what most homeowners believe, refinancing is not the only solution to save your home from imminent foreclosure. As a matter of fact if you were to weigh the different option you would find that opting for refinancing is like the proverbial jump from the fire into the frying pan.

Foreclosure comes into the picture when monthly mortgage payments are missed and most home owners fail to make their monthly payments because they are financial distressed. When you opt for refinancing your interest rate and consequently your monthly payment will be higher. Instead a more appropriate option is a home loan alteration.

Another major assistance of opting for mortgage alteration is that your credit score is not a deciding factor in the time of action of procuring home loan alteration. The other benefits of a mortgage alteration include

oReduction in interest rates up to an affordable 2% while with most refinancing options you would have to pay up to 5%.
oHome loan alteration can be done at no cost at all unless you avail the sets of an attorney or a company to negotiate for the mortgage alteration on your behalf
oYou will no escrow or title for home loan alteration
oMortgage alteration almost always features low interest rates while in refinancing the interest rates are variable and will change according to market conditions.
oIf your home vale in on the decline you may not be eligible for refinancing while a decreasing home value will be to your assistance when you go for a home loan alteration.

You can start the mortgage alteration procedure on your own by getting in touch with your mortgage program officer. You will need to submit documents like a home loan alteration hardship letter, recent pay slip, income tax returns and any other documents that will help the bank to verify your current financial condition.

So, mortgage alteration is a more appropriate option for home owner’s who facing foreclosure due to financial issues.

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