Foreclosure Loan Benefits

Don P.

A foreclosure loan, when available or allowed by a lender, helps a borrower stave off foreclosure of their home. Foreclosure loans are little more than a refinance loan that is arranged when a homeowner is experiencing foreclosure brought on by non-payment of a mortgage loan.  The benefit of a foreclosure loan saves the home and allows the homeowner to refinance the existing mortgage.

Save Home Owner from Foreclosure

A clear benefit of a foreclosure loan is the ability of a homeowner to keep their home.  Lenders arrange foreclosure loans for a borrower facing foreclosure who meets certain lending requirements including adequate credit.  The lender making the loan to a borrower facing foreclosure sets these conditions.

Provide a Refinance Opportunity

A homeowner facing a foreclosure who can qualify for a foreclosure loan refinances the existing mortgage with terms that should be more favorable than the previous loan.  The refinance opportunity lowers interest costs and monthly payments for the homeowner.