It's tough enough to qualify for foreclosure loans when you are having trouble making payments, but it's even tougher when the property is non owner occupied. Foreclosure refinance loans, non owner occupied, have higher equity requirements and higher interest rates associated with these types of loans. This is because it indicates that it is an investment property and the owner will not be residing in the home, making it a higher risk to the lender. Interest rates can be higher by 3/8% for foreclosure refinance loans, non owner occupied. In addition, instead of 10% equity, you are going to have to have at least 20% to 30% equity to qualify for foreclosure refinance loans, non owner occupied.
There are two types of refinancing that can help put funds in the pocket of someone looking for foreclosure refinance loans, non owner occupied. They are a home equity loan or a home equity line of credit. The home equity loan is like a second mortgage and can be used to set up a one-time disbursement of funds. The home equity line of credit works more like a checking account, where you have a set limit you can withdraw and pay back. For non owner occupied properties the limit you can borrow is typically lower than residential properties.
If you have a second home or investment property that you want to refinance, now is a good time because the interest rates are very low. Even with the additional interest you pay on the loan, it can still be a sound financial move. In addition, if you want to take some equity out of the property a refinance can help put money in your pocket to maintain or increase the value of the home with renovations. Don't be surprised if you are asked for even more documentation than a regular primary residence. This is very normal now that the credit climate is more restrictive and lenders are looking closely at loans that are financing investment or non owner occupied properties. Be prepared to spend a little more time documenting the equity, your income, and anything else the lender requests. In the end, if you have a high amount of equity sitting in a home that can't be sold right now due to market conditions, it's a good way to help you get monies to tide you over and pay expenses on a property that isn't even serving as a primary home. Hopefully, by holding on to it a little longer, the market will have a chance to turn around and you can sell the property for enough to pay off the foreclosure refinance loans, non owner occupied, and also make a small profit for yourself.
The time to start considering foreclosure loans, along with other other strategies, is the month you miss your first mortgage payment. Just like someone doesn't head into the woods without first scouting out the area on a map, you too should have some good ideas of the map of a foreclosure proceeding, and this will include gathering information on foreclosure loans. Foreclosure is a lengthy process, and anytime before your house has actually been auctioned off you have time to find extra cash and negotiate a resolution to forestall foreclosure proceedings.
The Map of a Foreclosure
When you are more than 30 days late on your mortgage, this will start you down the path of a foreclosure. It's still too early to get foreclosure loans even if you start checking into them now. However, you can potentially fend off getting in worse trouble simply by calling your lender. Once they are aware that you may need help modifying your loan, they can start to find ways to help you. They may offer a repayment plan or a loan modification plan. If you've only missed one or two mortgage payments, calling the lender and renegotiating the terms of your mortgage is the best thing to do at this stage. The worst thing to do is to ignore any correspondence or calls you get from your lender.
If a lender does not hear from you or they cannot work out something directly with you, then they will start legal proceedings. Now, it becomes even more expensive to bring the account current. You will not only be responsible for the missed payments and late fees, but also the costs your lender incurred whilst starting legal proceedings against you. Even so, it's still a stage where contacting the lender, particularly if you've been coy in the past, would help to figure out where you stand and how much money you need to get into the lender's hands to stop foreclosure proceedings.
Looking Into Foreclosure Loans
If you find that you can't possibly get enough cash to satisfy the lender and the foreclosure proceedings are getting ominous, you still have the choice to look into foreclosure loans. These are private lenders who are willing to supply foreclosure loans for people who may not have other choices, either due to damaged credit or other circumstances. The loan to value ratio of the loan is usually only 65% or 75% of the total market value of the home. So, you must have significant equity in the home to even consider foreclosure loans. You will have to be careful for scams that end up taking the home out from under you, and you will need to be certain that you are working with a reputable lender.
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