People across America are increasingly being faced with a homeowner’s worst nightmare: Foreclosure. The possibility of losing your home to the bank is very real, and it’s very normal to be scared and confused as the process moves along. What’s important is to keep a cool head, don’t panic, and evaluate your options as early in the process as possible. Many people who are approaching or are currently in a foreclosure do not realize that they may be qualified to refinance while in foreclosure and save their home, mainly because by this point in the process they have experienced rejection and denial by their own lender and often several others. But if you have Equity in your home, you can refinance in foreclosure and get back on track to improving your credit.

Refinancing in foreclosure is not like normal refinancing. When you apply for a regular, or conventional mortgage refinance, the most important thing a lender looks at when deciding whether or not to approve the loan is your credit and mortgage payment history. If you have not been more than 90 days late or behind on your mortgage payments, and your FICO credit score is above 500, conventional lenders will look at your refinance application and consider it. They may not approve it, but you’ll at least get looked at. When you go beyond 90 days late on your mortgage payments, no conventional lender will review your application, no matter how much money you make or how much better your situation is now than when you fell behind. Once you are considered 120 days late or behind on the mortgage, or your credit score falls below 500, the conventional lending industry simply cannot take the risks of lending to you anymore. If you’ve been rejected for a loan during the foreclosure process, even before the notice of default was recorded, it is usually because you are over 90 to 120 days late or your credit score is under 500, or both.

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If you are considering a home refinance there are some things you should be aware that should be avoided. Here are the 10 top mistakes people make when refinancing a home:Drawing On Your Home Credit Line Before Doing A Home Refinance

Many lenders have “cash out” waiting requirements or “seasoning” as it is referred to in the industry. That means they want to see a set period of time elapse once you have withdrawn equity from your home prior to issuing a new loan. Cash-out followed by refinancing may indicate a pattern of irresponsible credit use; a red flag for a lender. This could lead to stricter requirements and possibly a rejection of your loan. The typical waiting requirement is six months.
Taking On A Second Mortgage Before Refinancing On Your First Mortgage

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If you’re paying too much on your existing auto loan, an auto refinance loan may be the solution. But, is auto refinancing right for you? Ask yourself three basic questions:

1. Did you obtain the original rate from your dealer who, at the time, offered auto refinance loans?
2. Is it possible that another lender, possibly a bank, may have offered a lower rate on your auto refinance loan?
3. Are you interested in increasing the equity of your car, reversing the “upside-down” trend of your car’s value depreciating faster than you pay off the auto refinance loan?

If you answered ‘Yes’ to any of the questions above, then auto refinancing may make a lot of sense. And cents. With auto refinance loans, consumers everywhere are literally saving thousands of dollars over their loan terms. Consider this example:

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Bankruptcy is the last step for most people who are undergoing tough financial times. Many people fear that by declaring bankruptcy they will ruin their credit for the rest of their lives, but they find that they are able to begin rebuilding credit immediately after the bankruptcy becomes final.

Get Your Debt under Control

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