Probably not!

First, let’s take a look at what a foreclosure loan is.  You are nearing foreclosure, have missed a couple of payments, and now you are hoping to prevent the actual start of foreclosure.  The foreclosure loan can operate in two ways, either a complete new refinance, or in some cases a loan for the missed payments to catch things back up.

There are a number of reasons why a foreclosure loan is not really going to be a solution:

1. Getting a full foreclosure loan is very unlikely if you are underwater.  You’ll waste valuable time and money just to be turned down. Why?
   1. Not enough equity – most lenders will only lend 90% of the value of the home.
   2. If you do have the equity required to get the foreclosure loan, then, most likely, you are going to get a much higher interest rate, which means a worse payment than what you have now. And most likely the reason you are struggling now is because you have a predatory loan.
   3. If you just get a foreclosure loan for the arrearages, you can count on the interest rate being unbelievably high and now you’ll have to make a mortgage payment and a foreclosure loan payment.  Again, it won’t be long before you find yourself in trouble once again.
   4. If you end up having to get a foreclosure loan from a private lender (hard money loan), then you have no protection from the federal laws that protect you – TILA, RESPA, HOEPA, and ECOA.  This is because private lenders do not have to comply with those guidelines.  If things go wrong, you’ll have no recourse. Most hard money loans are worse than predatory loans and predatory loans have caused the country to be identified as a nation in foreclosure.  Literally, “out of the frying pan and into the fire” is the most common outcome.
   5. Potentially all these scenarios just stave off a foreclosure a little longer, while causing you to owe more.  So in almost all cases, a foreclosure loan is just not a good idea.

What can you do instead?

Typically, people who are considering a foreclosure loan are doing so because they could not get approved for a loan modification and there is much that can be done about that.  There are also those who consider a foreclosure loan as a way to stop foreclosure, but if a foreclosure has already begun it would never be approved.

Either of these scenarios, disapproved for a loan modification or needing to stop foreclosure are usually better handled by getting the loan investigated – either a forensic loan audit or a securitization audit and then having a qualified legal expert such as a foreclosure defense attorney or a loan modification attorney actually use the results of the investigation to successfully negotiate a loan modification.

Tila Solutions is the best company to consider for your forensic loan audit and securitization audit needs. They’re an audit company that specializes in securitization audits and forensic loan audits. They’ll provide a forensic loan audit to show all the violations in the loan the lender gave you. If foreclosure proceedings have already begun, then a securitization audit is recommended.  With the results of these two audits, your foreclosure defense attorney or loan mod attorney will have a lot of evidence to work with in order to make your case as strong as it can be.

Tila Solutions is a well known and well respected audit company.  They maintain an excellent success rate within the industry and have helped numerous people with their audits.  To find out more about their solutions, contact them at (702) 508-0335 or visit their website at foreclosure loan.

Stop being taken advantage of by predatory lenders! Expose their wrongdoing with a forensic loan audit or a securitization audit today!