What Is a Stop Foreclosure Loan?

Let’s say you are a homeowner and you and/or your spouse have recently lost your job or had to take a lesser paying job because of poor economic conditions in the country. This decreased household income means you may not be able to make your full regular monthly mortgage payment. One of the options that is becoming more popular for households in the situation is what’s called a stop foreclosure loan. Essentially what this is, is a restructuring of the mortgage so that the payments are reduced to a level that fits within your budget. It can even be an entirely new mortgage or a restructuring of your current mortgage. In either case the goal is to decrease the monthly payment and the lender can then avoid initiating a foreclosure process which they do not want to do because they lose money on that.