Browse Categories

Foreclosure Loan - Bridge Loan

Home Mortgage Lender provides information about Foreclosure Loan or Bridge Loan

Foreclosure loan is needed by some in order to avoid losing their home. A home is usually a person's largest financial possession and losing a home to foreclosure can have dire impacts on one's life and one's credit score (for the next 7 to10 years). It is extremely important to stop foreclosures at all costs, if possible.

One way to do this is by taking out a foreclosure loan. Sometimes called hard money or bridge loan, a foreclosure loan or bridge loan is usually a short-term loan (1 - 2 years) that has the sole purpose of paying off the missed mortgage payment and stopping the foreclosure before the sale date of the house. Mortgage application

Usually foreclosure loan or bridge loan lenders need to know four items before they can process the loan:

1. State the foreclosure home is located in
2. Mortgage balance
3. Value of property
4. Foreclosure sale date

Since layoffs and threats of unemployment may cause many to worry about foreclosure, HUD and the Department of Veterans Affairs (VA), the Department of Labor and the mortgage industry have come together to offer low interest foreclosure loan or bridge loan. The most obvious place to check with for a foreclosure loan or bridge loan though is with the original lender for your home. Mortgage application

Several foreclosure loan or bridge loan options may be available that you hadn't even thought of before. For instance, a lender is always willing to discuss accepting the total amount owed to them in a lump sum by a specific date. This option is usually combined with something called forbearance. In forbearance, the lender may allow you to arrange for a reduction or suspension of payments for a short period of time after which another option must be agreed upon to bring your loan current.

Another kind of foreclosure loan or bridge loan is a mortgage modification loan. For those who can make their payments on your loan, but do not have enough money to bring their account current or cannot afford the total amount of the current payment, their lender may be able to change one or more terms of the original loan to make the payments more affordable. Mortgage application

Some of the modifications may include:

· Adding the missed payments to the existing loan balance
· Changing the interest rate, including making an adjustable rate into a fixed rate
· Extending the mortgage loan term to lower the monthly payments

For those with mortgage insurance, you may qualify for a claim advance. A claim advance is an interest-free loan from the mortgage guarantor to bring your account current. The repayment of this loan may be deferrable for several years.

Your lending institution or another institution may even have some other options not listed here. It is important to discuss your situation with your lender first to see what the options are for stopping foreclosure on your home. Acquiring a foreclosure loan or bridge loan may just save your home and your financial security for years to come. Mortgage application