Welcome to Foreclosure Loans Guide
Home Loans Purchase Foreclosure Article
. For a permanent link to this article, or to bookmark it for further reading, click here.
Ways To Secure Foreclosure Loans With Other Equity
from:Most people try to secure foreclosure loans with other equity that comes directly from the asset in trouble: their home. You can do this by getting a second mortgage on the home and thus accessing some of the equity in the home to help pay off any missing payments and fees. This can be a good solution if you've experienced a temporary setback that you expect to resolve soon, like a job loss or a medical procedure that has put you out of work for a while. Some rehabbers also use the potential value of the equity of the home after rehabilitation of a property to secure funds from hard money lenders for renovations. However, there are other ways to secure foreclosure with other equity that has nothing to do with the home. It may not even have to be your own equity that you use to secure foreclosure loans with other equity, if you have access to private lenders.
Some Types of Other Equity
If you have assets beyond the home, like a savings account, certificate of deposits, stocks, bonds, or even a self-directed IRA, then you have funds that you can use to secure foreclosure loans with other equity. What's interesting about using other forms of equity to secure a loan is that it doesn't necessarily have to be your own assets. If you know of someone with assets that can secure your loan, you can offer to pay them interest for having them secure your loan with their assets. Of course, this would have to be a private lender and someone willing to trust you to pay back the original loan or have some way to recoup it if you default.
This type of negotiation is very attractive to people with extra money on their hands: private lenders. With rates of return on their assets in the bank generating 3 to 4%, it pays to have them made available to others for use that can return another 5 to 6% for doing nothing other than assuming some risk on your part. Again, you will have had to develop some relationship with private lenders to obtain foreclosure loans with other equity, particularly, if it's not your own equity.
Times When Private Money Is Useful
If you are trying to buy a pre-foreclosure and working with an owner and the lender becomes aggressive in their foreclosure proceedings, you can secure foreclosure loans with other equity from private lenders to buy you time. These would amount to short-term loans that are repaid as soon as you close on the house and recoup your investment. If you are the owner and need monies to renovate before selling, this can be another reason to use private money.
Home Loans Purchase Foreclosure Specific links
Home Loans Purchase Foreclosure News
Foreclosure settlement not likely to lift home builders' stocks
Many analysts advise investors to stay away from builders' shares, despite recent encouraging news for the housing industry. The $25-billion foreclosure settlement between the government and major banks might lift the U.S. housing market over time.
Read more...Bernanke's speech to home builders
WASHINGTON (Reuters) - Below is the text of Federal Reserve Chairman Ben Bernanke's speech to the 2012 National Association of Home builders International Builders' Show, Orlando, Florida: Housing Markets in Transition The economic recovery began more than two years ago, but it doesn't feel like much of a recovery for many Americans--certainly for those of you who depend on the housing sector ...
Read more...Foreclosure settlement just the first step, officials say
EDITOR’S NOTE: This is the first day in a three-day series looking at the state of New Hampshire’s housing market. The $43 million foreclosure settlement this week won’t right the wrongs of the New Hampshire mortgage crisis. It won’t correct the struggling housing market, and, with promises of an $1,800 payout, it won’t help foreclosure victims get back in their homes. “Eighteen-hundred dollars ...
Read more...Premier Mortgage Lending Assists Buyers With Second Chance
Premier Mortgage Lending and its Another Chance Home Loan Program offer homeownership for Southern Nevadans who have experienced a short sale or foreclosure, according to manager Rick Piette. "Now truly is a great time to buy a home in Las Vegas. But,
Read more...Foreclosure settlement has its critics
Kentucky homeowners are in line to receive about $60 million to help pay off mortgage debt, refinance loans and receive money back for improper foreclosures as part of a deal struck between the federa
Read more...