23 Apr 2022

Can I Refinance If My Current Loan Is In Arrears?

Refinance Current Loan in Arrears

Over 30 years, anything can happen. Homeowners can experience financial hardship at some point putting their ability to repay their mortgage in peril. Lenders afford homeowners a short grace period to send in a late payment. Once the late payment enters 30 and 60 days territory, homeowners must remain in contact with their lenders. 

They will outline the potential solutions based on repayment history and outlook. For example, some lenders will encourage homeowners to sell their homes. The proceeds will cover the outstanding mortgage. Ideally, it will net the homeowner some proceeds to start the process again.

Another option is to refinance the current loan even though it’s in arrears. Lenders consider several factors before agreeing to this solution. Since the refinance is taking place in an emergency, the home loan rates will go against the homeowner. In most cases, the homeowner will see higher rates. 

Mortgage House is a non-bank lender that works with an array of homeowners and homebuyers.  To refinance in arrears, homeowners must contact their lender promptly. Then, they fill out the appropriate forms and provide the required documentation. 

If you refinance through Mortgage House, our loan specialists have access to proprietary tools that help the process move efficiently. In some cases, they can offer a different set of solutions to help the homeowner regain their financial footing. 

Refinance Current Loan in Arrears Conclusion

Mortgage House is among the lenders that will refinance a current loan currently in arrears. To explore your options contact our loan specialists today.

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