How To Conduct A Mortgage Refinance When Delinquent
December 20, 2011
Return to recent posts
Although homeowners who are delinquent on their mortgages may
feel as though they are closer to foreclosure than they are to
getting back on track with their loan payments, there are many
paths out of delinquency if homeowners know how to refinance
While lenders have different definitions of what is considered
to be a delinquent mortgage, Lender Processing Services (LPS)
considers delinquency to have set in after 30 days of late
payments. According to LPS, which tracks non-current payment and
foreclosure rates in the United States, monthly delinquency rates
increased last month to 8.15 percent - more than 4 million homes -
which represents a 2.7 increase over November 2010 numbers.
However, at this time last year, the delinquency rate was nearly 10
percent higher, and it was about 30 percent higher at its peak in
January 2010, so there is reason for optimism.
If you live in New Jersey, Nevada, Florida, Illinois or
Mississippi, which reported the highest rates of non-current loans,
or if you are facing delinquency, you may be looking for a way out.
While there are several options, you should first remain in contact
with your mortgage lender to communicate why you have fallen behind
in your payments.
Your mortgage lender may be willing to work with you to conduct
mortgage refinance. It may modify your loan agreement by
extending your borrowing term, adjusting your interest rate or
adding the amount you are delinquent to your loan balance. Some FHA
loans may allow you to receive a loan from the lender equal to
the amount you are delinquent. Most commonly, a lender will roll
the amount you are delinquent into your regular payment over the
course of several months.
Again, the best method for avoiding foreclosure is to work with
your lender. It may have repayment options available that you have
yet to consider.
Knowing When To Refinance From An Adjustable To A Fixed-Rate
Mortgage Refinances, Home Purchases Affected By Payroll Tax