Tri Cities Washington Virtual Open Houses
Kennewick, Richland, Pasco, & West Richland Washington Virtual Open Houses in the Tri-Cities MLS MarketOne positive outcome fro... Read More
While the prospect of losing a home to foreclosure is never an attractive one, some home owners give up on the cause of their own property before it should really be time to call it quits. There is a last ditch effort, though it involves the dreaded word foreclosure, that can sometimes act as a great last ditch effort for those looking to avoid the reclamation of their property. While it is certainly not applicable to all cases, it is something to consider should the discussion ever turn to foreclosure.
A foreclosure loan in some cases is the answer and while the perception might be that the bank is all too happy to foreclose on your property, that is likely not the case. A foreclosure involves a lot of legal work that adds to the cost of giving you the loan in the first place, making the hassle something many banks try actively to avoid. You may be surprised how willing your own bank or others might be to assist you when it comes down to the prospect of foreclosure.
The Basics of a Foreclosure Loan
There are lending agencies out there that look specifically for those homes in distress so that they can offer something called a foreclosure loan. Basically, a lending agency enters your situation to purchase the loan agreement you have made with your original bank. In fact, there are times when your original bank will simply offer a foreclosure loan as a way of getting around the middle man and keeping you as a paying customer. While this may seem like simply shuffling around the debt, there are substantial benefits for consumers having trouble making payments.
Because your new lending agency is well aware that the original terms of your loan have not been working for you, hence the foreclosure threat, they will refinance the remaining portion of your loan in more favorable terms. One scenario that often plays out is the new lending agency lengthens the term of your insurance policy while lowering your monthly payments. While you may bristle at the thought of having to pay longer, getting monthly payments down to a manageable level is often the mechanism that makes these deals work for consumers.
Why Would a Bank Do This?
As stated above, the process of going through a foreclosure is a mess of legal and regulatory issues that take time away from other pursuits for the lending agency. From your original bank’s point of view, selling your loan at a discount to another agency helps them avoid all of that hassle while still seeing payment on your loan. No bank relishes the thought of uprooting a family, so the foreclosure loan can often get them out of that situation in a beneficial way.
For your new lending agency, the motivation is to get a paying customer at loan that they will probably get at a discount from the original institution. Though they have to be more flexible on payment plans and take on more risk (as you have already been near foreclosure once), the benefits of having a steady stream of income on a payment structure more favorable to the home owner is more than enough, especially when that loan can be bought at a discount (as they often are).
So, as your financial situation begins to look dire and foreclosure looks imminent, explore the possibility of a foreclosure loan to not only get you out of a negative situation, but also put you in a better position to pay off your mortgage each month through reduced payments. These types of deals benefit all involved and help you and your family hold on to your home.
Kennewick, Richland, Pasco, & West Richland Washington Virtual Open Houses in the Tri-Cities MLS MarketOne positive outcome fro... Read More
Horse Property at 158904 W North River Road Prosser, WA 99350 Home For Sale | $385,000. | MLS #251017 Perfect Prosser horse prop... Read More
62414 East Solar PR NE, Benton City WA 99320 Home For Sale | $550,000 | MLS# 251592 2.46 acre 2,560 square foot 2019 built ... Read More
2634 Dornoch Place, Richland WA 99354, Horn Rapids Golf Course Home For Sale | $300,000 | MLS®# 251402 Don't miss out ... Read More
106 Hills West Way Richland, WA 99352 Home For Sale | MLS #251246 | $395,250. Classic 2514 square foot, 3 bedrooms, 3 bath home ... Read More
Listing Your Home to Sell | What We Will Do For You When Selling Your Home on the MLS When you list your Tri-Cities Washington o... Read More
269 Wishkah Drive, Richland, WA 99352 Home No backyard neighbors and at the end of a cul-de-sac! Plus, this home is serviced by ... Read More
Helping Home Buyers | What We Do For You Local Tri-Cities Washington Husband/Wife real estate team offering all sorts of advanta... Read More
100 South Dawes Street, Apartment D, Kennewick, WA 99336 Condominium For Sale | MLS# 251090 | $275,000. $250,000. Built in 2009,... Read More
2505 West 32nd Avenue, Kennewick 99337 Home For Sale | $324,900. | MLS®# 250031 Well maintained and upgraded 2072 ... Read More