This is for those facing possible foreclosure and still able to obtain a new loan. Usually, if you fall into this group of defaulting owners, this is your first time in these straits, and your credit is, with the exception of your present circumstances, still fairly good. You can still qualify for a loan, although the new loan will likely be higher than the rate would be for someone not in your situation. Having said all of that, as rates continue to come down into the high 5's for 30 year fixed rate loans, this is definitely the time to seek a new loan to pay off the one that is currently causing you problems. Assuming you are employed and have resolved whatever issues led to your current default, you should immediately get in touch with your lender to see about replacing the existing loan with a new one at a lower rate than your current rate. You may be pleasantly surprised.