Our refinance and 2nd loans can prevent foreclosure if borrowers act fast with refinancing options to avoid payment defaults. In many cases, government loans or hard money second mortgages can also prevent foreclosure if homeowners refinance prior to being forced out of their home.
We will introduce you to mortgage bankers that offers foreclosure prevention with a short sale mortgage, refinancing and hard money home equity loans for debt consolidation and cash out to avoid losing your home. Sometimes a refinancing can save you from a foreclosure. Foreclosures go into effect when a homeowner does not make his or her mortgage payment for an extended period. BD Nationwide has experience working with foreclosure prevention and second mortgage lenders.
Can I take out a second mortgage to get my first mortgage caught up and prevent a foreclosure?
Taking out a 2nd mortgage may be an option to get your 1st mortgage caught up, but you need to have enough equity in your home for this to be a consideration. In most cases you will need to be less than 70% combined loan to value to qualify for a 2nd mortgage or bad credit HELOC loan if you have a reported 120 day mortgage late on your credit report.
Usually a lender will begin the foreclosure process after the borrower has missed 3 months in a row of mortgage payments. Second mortgages can help prevent a foreclosure in some cases. If you are late on your mortgage payments, and you need cash to get caught up, then consider a second mortgage loan so you can stop the foreclosure proceedings.
How to Stop a Second Mortgage Foreclosure
Facing foreclosure on a second mortgage can be a daunting experience. While a second mortgage often carries less risk than a primary mortgage, the consequences of defaulting can still be severe, including the loss of your home. However, there are several strategies you can employ to prevent foreclosure on your second mortgage.
1. Understand the Foreclosure Process
The first step in stopping a second mortgage foreclosure is understanding how the process works. A second mortgage, often taken out as a home equity loan or line of credit, is secured by your home. If you default on this loan, the lender has the right to foreclose on the property. However, because the primary mortgage lender has the first claim on the property, the second mortgage lender may be more willing to negotiate to avoid the complex and costly process of foreclosure.
2. Communicate with Your Lender
If you’re struggling to make payments, don’t wait until foreclosure proceedings begin. Reach out to your lender as soon as possible. Lenders are often willing to work with borrowers to find a solution, as foreclosure is an expensive and time-consuming process for them as well. By communicating early, you may be able to negotiate a loan modification, forbearance, or repayment plan that makes your payments more manageable.
- Loan Modification: This involves altering the terms of your loan, such as extending the repayment period or reducing the interest rate, to lower your monthly payments.
- Forbearance: In a forbearance agreement, the lender temporarily reduces or suspends your payments, giving you time to get back on your feet financially.
- Repayment Plan: This option allows you to spread out missed payments over a set period, making it easier to catch up without a large lump sum.
3. Consider Refinancing
If you have enough equity in your home and your credit is still in good standing, refinancing your mortgage might be a viable option. By refinancing, you can pay off your second mortgage and consolidate your debt into a single, more manageable payment. This can also potentially lower your interest rate, further reducing your monthly obligation. However, refinancing may come with closing costs, so weigh the benefits against the costs before deciding.
4. Seek Professional Help
If you’re overwhelmed by the foreclosure process, consider seeking help from a housing counselor or attorney. Housing counselors can help you understand your options and work with your lender to negotiate a solution. Many non-profit organizations offer free or low-cost counseling services. An attorney, particularly one who specializes in foreclosure defense, can provide legal advice and may be able to challenge the foreclosure in court if there are grounds to do so.
5. File for Bankruptcy
While filing for bankruptcy should be considered a last resort, it can stop a foreclosure in its tracks. Chapter 13 bankruptcy, in particular, allows you to reorganize your debts and create a repayment plan to catch up on missed payments over time. This can include arrears on your second mortgage, potentially saving your home from foreclosure. However, bankruptcy has long-term consequences for your credit and should only be pursued after consulting with a qualified attorney.
6. Sell Your Home
If it becomes clear that you can no longer afford your home, selling it may be the best option to avoid foreclosure. By selling your home, you can pay off your second mortgage and potentially avoid damage to your credit. In a short sale, your lender agrees to let you sell the home for less than the amount owed on the mortgage, which can be a way to avoid foreclosure if your home is worth less than your mortgage balance.
Save Your Home with a Second Mortgage from Lenders at BD Nationwide!
Nationwide Mortgage Loans provides wholesale second mortgage solutions to help homeowners get cash, finance home improvements and consolidate their bills to lower interest and save money. Find out how much our clients are saving each month year by getting the lowest possible interest rates with our wholesale loan programs.
Fixed Rate Refinance Option with FHA and Non QM Loans
FHA Home Mortgages offer low rate 30-year fixed rate loans for borrowers who have been late on their mortgage after their payment adjusted. FHA home loans that are offered up to 97% rate and term or 95% for refinancing terms with cash out. (credit scores are not a factor, but mortgage history is critical).
The FHA Secure loan was released specifically to assist foreclosure prevention. Millions of borrowers have had been suffering with adjusting mortgage rates and many of them are unable to afford their new variable rate payment. The FHA Secure give borrowers another opportunity to refinance into an affordable fixed rate mortgage.
FHA home loans ensure low fixed mortgage rates. Also see options for FHA Streamline Refinance and FHA Secure Refinancing.
BD Nationwide offers second mortgage solutions designed to streamline your bills into a single, consolidated payment. Homeowners are opting to shorten their pay-off terms by making additional principal payments each month. Discover the substantial monthly savings achieved by our clients as they refinance the revolving interest on their credit cards into a fixed simple interest second mortgage.
Highlights on Second Mortgage Foreclosure Programs
•Fixed Rate Second Mortgages
•Refinance Past Due Mortgages
•1st and 2nd Mortgage Consolidation
•Refinance Credit Card Debts
•Pay off Collections
•Avoid Foreclosure
•Past Bankruptcy OK
Additional 2nd Mortgage Loans to Consider: 2nd Mortgage Terms | No Documentation Mortgage | Second Mortgage Refinancing | 90% | 100% Mortgage
Stopping a second mortgage foreclosure is challenging but not impossible. The key is to act quickly, explore all available options, and seek professional help if needed. By taking proactive steps, you can protect your home and financial future.