Q:

What are some lenders that provide foreclosure bailout loans?

A:

Quick Answer

Lenders that offer foreclosure bailout loans are Alpine Mortgage Services, General Service and Prime Equity Mortgage, according to their respective websites. Distressed borrowers with a preference for private lenders should visit HardMoneyLLC.com and similar sites.

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Full Answer

Foreclosure bailout loans are essentially a form of mortgage refinance that borrowers in default can use to stave off foreclosure, explains Prime Equity Mortgage. Most loans of this nature require at least 40 percent equity in the property and credit scores exceeding 500. Loan amounts, which vary by level of indebtedness, rarely exceed 65 percent of the distressed property's value.

The federal government has a number of programs that can benefit homeowners who are at risk of foreclosure, explains the U.S. Department of Housing and Urban Development. These include the Home Affordable Modification Program, which lowers monthly mortgage payments to 31 percent of the distressed homeowners' pretax income and the Home Affordable Refinance Program, which aids homeowners who are unable to refinance through traditional avenues.

The Principal Reduction Alternative program seeks to help homeowners who have properties that are worth less than the outstanding loan balance, notes the U.S. Department of Housing and Urban Development. The Home Affordable Unemployment Program may benefit homeowners who are unable to make mortgage payments due to unemployment. The initiative temporarily reduces or suspends payments for at least 12 months while the homeowners in question seek reemployment.

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