A Foreclosure Bail-out Loan is essentially a mortgage refinance that is granted to a homeowner in default and at risk of losing their home to foreclosure. A foreclosure bailout may be a solution for you, but it depends on your unique situation.

In order to consider a bailout loan, you should have significant equity in your home. Most banks like to see at least 25% equity. Your credit will also have to be good, with your credit score at 500 or above.

Since most homeowners' credit rating drops when they default on the mortgage, they end up having to take a Hard Money Loan in order to refinance before foreclosure.

You should consider talking to your Lender and attempt a mortgage modification prior.

Get more information on Foreclosure Bail-out Loan in the Real Estate Forum