Not making monthly mortgage payments can be a huge blow for homeowners, but there are options that could help give them time to get them back on their feet.
“The first thing that we take a look at is to refinance the initial loan for less of an interest rate,” said Roger Bowman, a mortgage analyst with the Neighborhood Assistance Corporation of America. “Another option they have is to try to refinance the property to buy down some of their debts, because it might be the debts that are actually killing them.”
To Bowman, the biggest issue with potential homeowners and loans appears to be people putting themselves in situations where they are set up to fail from the start. By waiting and making sure their finances are in order, homebuyers can put themselves ahead of the curve.
“When we do consulting with clients before they purchase a property, we look at their debts and scenarios,” Bowman said. “I might stretch someone out to two or three months to take care of certain items first.”
As for applying for a subprime loan, Bowan just sees it as an unwise choice to make.
“Nope,” he said. “I would not do it.”
