Facing foreclosure can be very stressful. However, there are several options you can look into to help stop foreclosure.
Refinancing
Refinancing is when a borrower takes out a new loan to pay off their existing debt which enables them to get a lower monthly payment and a different term length. Although longer loan terms may have smaller monthly payments, they also carry a higher overall cost due to spending more on interest in the long run. However, if you refinance a loan with a shorter repayment term, you can save money on the total interest paid.
Hard Money Loan
A hard money loan is a type of loan that typically uses property as collateral. This kind of loan is considered a “last resort” loan with the lender generally being private individuals or companies, not banks. Hard money loans are not based on the creditworthiness of the borrower, but rather have terms around the value of the property being used as collateral.
Reverse Mortgage
A reverse mortgage is a loan that allows homeowners who are 62 and older to borrow money using their home’s equity. However, unlike a traditional mortgage, borrowers don’t make monthly mortgage payments but instead repay the loan when they no longer live in the home. Homeowners who meet the requirements for a reverse mortgage are still required to pay property taxes and homeowners insurance.
Mortgage Forbearance
Mortgage forbearance is when the lender arranges to temporarily pause mortgage payments. Forbearance is helpful in unforeseen circumstances where you are dealing with financial hardship due to damage to your home from a natural disaster, unexpected medical costs, or job loss. Forbearance does not decrease the amount you owe on your mortgage. Instead, your lender permits you to stop making payments for a specific number of months. Then, you must pay the full amount back at one time when your payments resume.
Don’t face foreclosure alone. Contact us at 914-600-5502 so we can help navigate through the process.
