OK, so your phone has been ringing off the hook with collection calls, you're receiving threatening letters from your mortgage company, you're scared, frustrated, angry, and you are about at wits end as what to do next. You're vulnerable and at this point willing to do just about anything to save your home. Then you spot an advertisement online or maybe you receive a postcard or letter in the mail, either way it appears to be the answer to your prayers. It reads, SAVE YOUR HOME FROM FORECLOSURE * LOW CREDIT SCORE LOANS * EASY QUALIFICATIONS!!!

Wow' sounds great but be warned if you are considering this type of loan to save your home from the possibility of foreclosure. If you have been late on your mortgage and/or other debt, the credit bureaus know it, and so will the scammers and predatory lenders. Your lowered FICO credit score will affect the terms and rate at which you will be approved. Remember, higher interest rates will ultimately equal higher payments. If you are already experiencing difficulty making your house payments, it's probably safe to say that plunging yourself further into debt with a bad loan and high costs will only make things worse.

Many of the foreclosure loans available to you at this point will be made by small private lending sources. Most of these lenders/investors will generally only approve a loan of this type if the owner has a significant amount of equity in the home. Your equity is the difference between the amount owed and the actual market value of the property. Lenders/investors generally will only lend 60% to 70% of the homes market value. Once again, BE VERY CAREFUL! Why? Because this creates great incentive for the unscrupulous lender to start the foreclosure process again as soon as you are late with a payment or should you default on any other terms of the agreement.

KNOW WHO YOU?RE ENTERING INTO THIS AGREEMENT WITH, who they are and what they've done in the past. THEN READ EVERY WORD of every document and understand what it is you are agreeing to. If things don't smell right, consult an attorney or just walk away before you sign anything. Entering into a new loan agreement with bad terms and a high interest rate may give you the short term relief you need now, but will most likely, only be setting you up to fail in the not to distant future. The winner in this situation tends be the lender/investor who has charged higher loan fees, much higher interest rates and the future possibility of walking away with your home and all of your equity.

Here are some things, which if you haven't already done you should consider doing. Contact your lender and express a desire to work some thing out. Do not let fear stop you from making the calls that will solve your foreclosure dilemma. YOU CAN AND MUST DO IT, IT?S WORTH IT!

If you find that it's not in your nature to make the calls or if you don't know or understand all of the options that are available to you, contact one of the free or professional fee based organizations that will handle all of the negotiations with your current lender for you. There are certain qualifications you will have to meet but you may not need to refinance anything. You may qualify for a workout program on your current mortgage that will solve your problem, get you current and set you up to succeed.

More info on your stop foreclosure information search:

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