Obtaining a Loan to Stop Foreclosure

If you are facing foreclosure, you can obtain a loan to stop foreclosure. A loan to stop foreclosure most often means a refinance loan to prevent a foreclosure. A stop foreclosure loan is a loan you can avail to offset the impending danger of foreclosure.

Lenders

There are several lenders who will loan you money, regardless of your credit or your past mortgage loan history. You can obtain a loan to stop foreclosure from your existing lender if the lender deals in such loans or you can approach a new lender. Obtaining the loan from your existing lender has its own advantage as the lender already has the required details. The paperwork involved will be less. Most lenders have basic minimum guidelines to qualify for a foreclosure loan. If you are more than two months in default, you will require a stable income and equity in the home to be considered. It is therefore important that you apply for such loan at the earliest.

If you are unable to obtain a loan to stop foreclosure from traditional lenders like banks and finance companies, there are non-traditional foreclosure lenders and private foreclosure lenders who have less stringent guidelines. Such non-traditional foreclosure lenders and private foreclosure lenders can lend you as much as 90% of your home's value.

What Lenders Look For

When you apply for a loan to stop foreclosure, you must provide the following details:

• the property condition
• the estimated value of the home and
• the current mortgage balance.

The three main factors the lender will look at when you apply for a loan to stop foreclosure are:

• Credit score
• Income
• Loan to value

Your interest rate will depend on your credit score. Before deciding on a lender, make sure you review the lenders and their policy. Be prepared to show statement of accounts on outstanding debt, proof of income and depending on the amount requested and copy of income tax returns. Some lenders will give you loans to set off the debt and even meet immediate needs.

What You Should Consider

Before you decide on the lender, make sure that you scout around for the best deal. Shortlist a few lender and request a quote from each of them. Choose the one that offers you the best deal. Consider all other options to stop the foreclosure before you apply for a loan to stop foreclosure. You should explain to the lender the reasons for your default and how you plan to repay the new loan.

If you want to apply for a loan to stop foreclosure, consult with an experienced foreclosure attorney. An experienced attorney can help you with the application process and documentation.