Cash out refinance options offer the perfect solution to stop foreclosure by using the equity existing in the property. Often times foreclosure rescue scams trick homeowners by stealing equity in the property, in exchange for offering to stop foreclosure. Sadly, most homeowners are unaware that they can work out a better solution to use their cash out refinance options, that wouldn’t involve giving a large portion of equity away in the home to a third party offering to help.
Plus lots of these foreclosure rescue scams end up not stopping foreclosure, the property and equity are gone forever. The homeowner is left with no property and no equity once the property is foreclosed on.
This is why homeowners must educate themselves so that they don’t become victims to foreclosure rescue scams, as well as fraudulent lending scams.
Typically, real estate investors are always looking for houses to buy. However, not all real estate investors are looking to do the right thing or treat the homeowner with fairness. Many properties facing foreclosures are often being sold as for sale by owner to move them faster. Often promoted on Zillow for mass exposure. It’s even harder to find houses for rent in a foreclosure situation because of late mortgage payments being reported on credit reports.
If you facing a foreclosure situation, the very first thing you should do is to explore your cash out refinance options to prevent foreclosure.
Ask a lender to cash out refinance, some lenders look at the deal (amount of equity) in the property when considering a cash-out refinance option.
If your home is worth $375,000 and you owe only $75,000 on the existing mortgage loan balance about to be foreclosed on. Then you have $300,000 worth of equity in the property. In the cash out refinance option you could pay off the existing mortgage loan balance of $75,000 including foreclosure fees, etc. Which all fees are itemized in the Pay Off Statement with the due date.
Whatever is left from the balance of paying off the existing mortgage loan is money that can be cashed out and the new loan would be the perfect solution to save the property from foreclosure.
Sell the property to a trusted real estate investor, if you find that there is simply not enough time to complete cash out refinance before foreclosure, selling the property to a real estate investor is a great option.