Finance Roll

If a person is facing the unfortunate prospect of a foreclosure on their home, there are some steps that they can take to stop the process of foreclosure. Two of the options that are available are to refinance or to modify the current loan. There are advantages to both, and each one has different features that can benefit the borrower who is up against foreclosure.

Some of the advantages to refinancing your current mortgage which is facing foreclosure with a new loan are:

- You can possibly get a lower interest rate than you are paying on your current mortgage.

- You can pay the loan back over a longer term, which means a lower payment that is easier on your budget.

- You can roll the back payments, and late fees into the new loan, which means that you get to start with a clean slate.

Should a borrower decide to stop their foreclosure with a loan modification, here are some of the advantages to using this option:

- You deal with your current loan provider; they know you and have all your information

- You don't have to go through the process of getting a loan, which can be tedious

- You could save yourself new loan fees

These are a few of the pros and cons of a refinancing versus a loan modification to prevent foreclosure on a home. Both options are attractive alternatives to a looming foreclosure on a persons dwelling place. The option that is best for a person will depend upon each persons particular circumstances.