Foreclosures Book

you of the extension and explains the delay. If the servicer does not respond at all to your Notice of Error, consult an attorney. Your challenge of the quote won’t stop foreclosure proceedings, so consider paying the full amount quoted, and then worry about disputing any errors later, to make sure there are no delays in crediting your account and halting the foreclosure. MORTGAGE REFINANCING Depending on your situation, refinancing your loan to stop a foreclosure could be a viable option. This would mean taking out a new loan to completely pay off your mortgage, including

your delinquencies. Of course, you’re trading one loan for another, but if you can obtain a lower interest rate, you might reduce your monthly payments. Some homeowners refinance to obtain a different type of loan. For example, they might replace a variable rate mortgage with a fixed-rate mortgage or replace a 30-year mortgage with one that has a 15-year amortization schedule.

Unfortunately, if you’re facing foreclosure and have missed or made late payments, you might have difficulty qualifying for a new loan. Here are some good resources on refinancing your mortgage: ; ; A Consumer’s Guide to Mortgage Refinancings, available on YouTube as well as in text versions online, provides information on refinancing, including worksheets and a glossary of industry terms.