About Loans for People in Foreclosure

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Loans are not generally available for people in foreclosure, but loan modifications may help a person be better able to handle home loan payments. Get information on adjusting the terms of a mortgage loan from a mortgage broker in this free video on home foreclosure.

Part of the Video Series: Home Equity Loans & Foreclosures
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Video Transcript

Hi this is Matt McKillen with Innovative Financial Group. The question posed to me today is what types of loans are available for people that are in foreclosure? Well let's think about that question. If someone's in foreclosure, basically what's happened is that they've probably fallen anywhere from 3 to 4 to 5 months behind or are delinquent on the mortgage with their existing mortgage lender. Honestly do you think it really makes a lot of sense to take that borrower that's in trouble on their first mortgage with their current bank and just pay that loan off with a new lender? It doesn't make a lot of sense in today's lending environment. Probably the most beneficial program that would be available to someone who's in foreclosure is what's called a loan modification. A loan modification is where the bank takes a look at the borrower's current status, maybe there was a loss of job and income but now they're back to work but they're behind and they can't get caught up. Perhaps they're on a very volatile adjustable rate loan that was maybe fixed rate for three years and now the payments are shooting through the roof every six months. Really what makes more sense for the borrower that's in foreclosure if they want to retain their home is come up with a solution to modify the existing loan they're in versus trying to get them qualified with another bank to start all over. Again my name is Matt McKillen and I'm with Innovative Financial Group.

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