How Do You Refinance When Behind In Mortgage Payments?
If you are behind in your mortgage payments, you may be able to refinance your loan, depending on who owns or guarantees it and the circumstances surrounding your financial distress. For instance, the federal government made refinance and modification options available to struggling homeowners through the Making Home Affordable Program in 2009. Under the program, borrowers in arrears may qualify for a loan modification, but not a refinance. Other loans, including those insured by federal government agencies, such as the Federal Housing Administration (FHA), may be refinanced if you meet certain criteria. In general, once you’ve missed payments, eligibility for refinance depends on various factors. Find out who owns your loan. If you acquired a conventional home loan, such as a mortgage not insured by the FHA or Veterans Administration, then your loan is likely owned by the major loan guarantors, Fannie Mae or Freddie Mac. You may be eligible for the Home Affordable Modification Program
