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Hard Money Mortgage Refinancing
Mortgage loan companies are usually willing to help when you first fall behind on payments. If you are in this situation, you may be able to get a home equity loan (2nd mortgage). However, once 30-day delinquency turns into a 120-day or 180-day one, the lender will usually start the foreclosure process. If you have bad credit and are facing foreclosure, a hard money loan may save your home. A hard money loan is one that typically comes from private money lenders, rather than an accredited bank or credit union.
It's hard to qualify for a mortgage if you are late on your bills, especially since lenders have tightened their credit standard so much these days. Subprime mortgages have all but vanished, so there are few refinancing options for those with bad credit. So, how can you avoid foreclosure? If you have no other choice, you may want to consider a hard money loan. It's a last resort loan for last resort circumstances, but it could save your house from being foreclosed.
If you have 40% or more equity in your property at today's fair market value (the price you would expect to get if you had to sell your home in 30 to 60 days), you may qualify for a hard money refinance even if you have bad credit. "There are private investors who, if the interest rate is high enough and the perceived risk is low enough, they will put the money up," says Pam Strickland, owner of Mortgage Consulting Services in Santa Barbara, Calif.
Experts generally advise people to get a loan that's just large enough to make the mortgage payments, and sell the house before it goes into foreclosure. But, a Wall Street Journal article entitled "When It Takes a Miracle To Sell Your House" indicated that existing-home sales fell 8% in September to a seasonally adjusted annual rate of 5.04 million units, the lowest level in nearly 10 years, according to the National Association of Realtors (NAR). So, it may be a better idea to get a hard money loan to catch up on your mortgage payments to avoid foreclosure, and hold onto your house. Then, refinance once your circumstances improve, and pay off the hard money loan.
Nationwide Mortgage Loans Loan Spotlight |
 Bad Credit Mortgage Refinance
Many homeowners run into obstacles over the years making their mortgage payments. Things come up in life beyond our control and people can get a few months behind on their mortgage. We offer hard money refinancing to help people get back on their feet and rebuild their credit so they can refinance with a prime rate loan sooner than later.
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| Also see options for No Income Verification , Debt Consolidation Loans and Bad Credit 2nd Mortgages |
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