How To Avoid Foreclosure | Part 3 Refinance

    How To Avoid Foreclosure | Part 2 Deed in Lieu

    In part 3 of this five part series “5 steps to preventing foreclosure” we’re going to cover refinancing and
    learn how homeowners in Orange County can avoid an Orange County foreclosure, save their credit and
    get their financial lives back on track.

    How Does Refinancing Work?

    To refinance their home a homeowner must first apply for a new mortgage loan with a
    mortgage lender. Once the refinance process starts, the homeowner can expect the following process:

    • Appraisal: The home will be appraised to determine its value in the current housing market
    • Credit file: The homeowner can expect to have their credit file pulled from the lender and reviewed
    • Title re-portion: The lender will be actively searching for any liens that are on the property that will keep the home from being refinanced

    Once a homeowner receives approval, they will meet at the bank, lenders office or title company where
    paperwork for the new home mortgage will be signed. All proceeds that come with the new mortgage
    loan will be used to pay off the homeowner’s old mortgage loan, junior loans or liens that they have on
    their property.

    Be Prepared For Fees

    One of the biggest parts of the mortgage re-finance process are the fees, any Orange County home
    owner who is considering refinancing their home can expect the following fees: application fee, loan
    origination fee, appraisal fee, inspection fee, title insurance, points and closing fees. These costs should
    be taken into consideration as well as other issues like how long they intend on staying in their home and will they be able to afford their new mortgage payment?

    In the end, one of the biggest benefits of refinancing is that the homeowner will only owe money to one
    Mortgage Company; they will be able to simplify their financial lives and get back on track.

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