FORECLOSURE LOANS

If you are in foreclosure and the current mortgage is delinquent, you can get a 65% loan on your property. These loans are not fico driven, but are equity based. The maximum loan to value is 65% on these loans. These are special loans that are provided on a case by case basis. Your property and the ability to pay back is usually the main underwriting criteria for these loans.

If you have a notice of default or a Trustee sale notice, mainstream lending industry is not going to help. It takes a special lender to do these loans. These are private money lenders with very short term lending horizons. These are 3-5 year loans amortized for 30 years so your payments are still the same more or less. You can expect interest rates to be anywhere between 10 %-14 % on these loans with 3-6 points for origination. Paperwork is minimal, a loan application and just a few income documents and nothing elaborate as far underwriting is concerned. These loans can be closed within 2-3 weeks and even within one week if things go smoothly.

So if you have a current Notice of Default  ( NOD) or Trustee Sale ( TS ) notice, do not sit back and let time takes its toll. You should take action right away. Any delays will result in your home being foreclosed, and sold at the Trustee sale outright.

BANKRUPTCY CHAPTER 13 LOANS

If you are currently in chapter 13 and making payments on time, you can refinance and payoff your chapter 13 and clean up all your records for once and good. Chapter 13 loans can go as high as 75% and 80% in some cases. You have to obtain a complete schedule of debsts from your Trustee’s office of your current chapter 13 filings and provide a proof of successful payments to the Trustee. Usually a 12 month history is required. The loan basically consolidates all your debts into one single mortgage and that is amortized over 30 years and is therefore is much more affordable to you. Consolidation of Chapter 13 is done by most of the mortgage industry, and does not requires the use of special private lenders, as in the case of foreclosure loans listed above.

Both these types of loan are not fico driven , but based on your property value and your collateral and your ability to pay. You will still be required to provide proof of your income with paychecks or other documents.