Foreclosure Redeemed

Foreclosure Redeemed

Foreclosure Redeemed

A Foreclosure Redeemed Loan is a process where your lender allows you to pay off your mortgage with a lower payment amount. The reason behind the reduced payment amount is that the original loan was not fully paid back and hence a default charge has been filed against you. As a result, your mortgage has been reset at a current lower rate and this will be the amount that is used by the bank to recover their money. If you can prove that you are not in a position to make a payment that would reflect a higher amount of money from the bank, then you can have your foreclosure Redeemed loan cancelled.

Most homeowners are not qualified for a Foreclosure Redeemed Loan due to a number of reasons. One such reason is that your mortgage is an adjustable rate mortgage and hence it may be difficult for you to adjust to a fixed rate mortgage. This is because the interest rate on a Foreclosure Redeemed Loan is often based on the Mortgage Rate Schedule and if the interest rate is increased, so will the mortgage amount and hence the amount of loan that can be recovered. Hence your mortgage needs to be strong in order to secure the recovery of your loan amount. Another important factor that stops borrowers from having a Foreclosure Redeemed Loan is that the legal costs incurred during the foreclosure process takes away much of the money that the borrower would have received had they been eligible for a loan that does not involve a foreclosure. Most borrowers fall into the trap of taking the first offers that are given to them and agreeing to them without checking them against the details provided. They usually also tend to negotiate very hard because they fear losing their property. Remember, a Foreclosure Redeemed Loan is only possible when the bank agrees to the amount that you as a borrower have agreed upon. In most cases, the legal costs incurred during the process will end up being more than the money that the homeowner would have received had they refinance. Hence your Foreclosure Redeemed Loan should be well within your financial capability.

possibility of Foreclosure Redeemed 

A few lenders have made it possible to qualify for a Foreclosure Redeemed Loan even though your mortgage is on file at the Bank of America or Chase Bank. It is not unusual for there to be a slight delay in getting a Foreclosure Redeemed Mortgage after the original mortgage document has been recorded. The main reason why a Foreclosure Redeemed Mortgage cannot be processed immediately, is due to the fact that there may be some unpaid funds from the previous homeowners. These unpaid funds remain as unpaid credits on the credit report of the borrower.

As mentioned above, the main reason why a Foreclosure Redeemed Loan cannot be processed immediately, is due to the possibility of the mortgagor stopping the foreclosure before the mortgage is finally paid off. If the seven years period mentioned above is satisfied, after which the borrower has not been able to pay off the mortgage, the lender will then be allowed to proceed with the foreclosure. If the period of time allotted for repayment of the mortgage is over seven years, then the mortgagor has the option of submitting an application to the court to extend the foreclosure if the court decides that it would be in the best interest of the borrower. In most cases, the courts will approve an extension allowing the foreclosure to go forward, but they must act in good faith. The courts are not likely to extend a Foreclosure Redeemed Loan if the homeowner does not have the means to pay it off and there is no chance of them becoming current on the payments required to keep their home.

When a Foreclosure Redeemed Loan is approved, after the homeowner has gone seven years without making one payment on the mortgage, the lender will then give the homeowner a grace period of up to three months to pay off the loan. During this three-month grace period, the money owed on the mortgage must be repaid and no additional money can be borrowed. This grace period is separate from the regular three-month payment schedule for the mortgage. In case of an extension, the lender must inform the homeowner of the extension and provide written notice specifying the amount owed for the next three months. The exact amount of the extension is usually computed by adding the actual cost of the mortgage, the first monthly payment and the interest due at the current rate plus the second monthly payment.

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