Got Bad Credit and Want to Remortgage?

These days lots of people are suffering from the loss of employment, or otherwise experiencing some sort of financial hardship. This is normally a time when a person seeks out a remortgage even with a low credit rating in trouble in order to avoid foreclosure.

People with shaky credit usually try to get a remortgage loan to help lighten the load of financial hardships. The first thing that needs to be done get a remortgage with bad credit is to contact a free credit counseling service who know exactly which unique steps need to be followed in order to properly determine a person's financial situation. It is important to never pay for these sorts of services, and this is because the information and help is always available free. The credit counseling service has a goal to help homeowners to stay out of foreclosure, and to help those who are just simply experiencing some pretty severe financial problems.

The person who is doing the interviewing from the credit counseling service will ask a number of questions. Having mortgage loans available and ready to this person is a must, and it will aid in answering budget questions like utilities, car loans, and food expenses. The person from the credit counseling service who is doing the interview will talk about all the options available and next they will call the mortgage company or bank on a three person phone line.

There are generally two different programs that have been put into place for aid in this process. One of these is called HARP, and this is short for home affordable refinance program. Also if the person's mortgage is higher than 31% of that person's monthly income, that person might be eligible for what is called HAMP. This does not matter if they have bad credit or not. Now even if the person's loan is owned by popular sources such as Fannie Mae, or Freddie Mac, the person might still be eligible to use the HARP remortgaging program. This is the easiest way for a person to try for a remortgage even if they have bad credit.

It is also important to keep track of the business section of your newspaper because the Federal government is always trying to develop new programs that will assist people with bad credit in saving their homes. Don't give up – whether HARP, HAMP or some new program, try to avoid foreclosure.

Source by Sandra Tiffany

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