Home Affordable Foreclosure Alternatives Programs–Homeowners Avoid Foreclosure When Modifications Fail

Home loan modifications have been helping some homeowners over the past month get a more affordable home loan payment. However, there have been more homeowners who have been seeking ways to avoid foreclosure when a traditional modification doesn’t work. Homeowners have been denied mortgage assistance in some cases and have even been unable to afford their home after a modification, but help through the Home Affordable Foreclosure Alternatives may be available.

Short sale options and deed in lieu of foreclosure plans have been offered to homeowners who are struggling to pay their mortgage and are simply facing the loss of their home due to the inability to pay their mortgage payment. Some homeowners have not qualified for home loan modifications, while others who may have received a modification, simply cannot afford their homes even with a lower mortgage payment.

There is a problem that many lenders and homeowners are facing, which is homeowners falling into delinquency even after a trial or permit modification has been offered. Yet, these foreclosure alternatives may help homeowners get out of their home loan obligation when there’s simply little else that can be done. For instance, short sales have been offered to homeowners who have been struggling with an underwater mortgage and can no longer afford their monthly mortgage payment as a result.

The deed in lieu of foreclosure program has helped homeowners who are willing to surrender their home to their lender as long as they can avoid the foreclosure process. Foreclosure can be time-consuming and expensive for lenders and can cause a great deal of damage to a homeowner’s credit score, both of which are hoped to be avoided with this foreclosure prevention plan.

Many of the nation’s top lenders are offering homeowners these opportunities to get out of their home loan payment without facing foreclosure. While there have been troubles with these various mortgage assistance programs and foreclosure prevention options, homeowners are being prompted to talk with their lender about options for dealing with that particular mortgage situation.

Again, lenders want to avoid having homeowners simply walk away from their home loan, so in cases where homeowners have tried to save their home by getting a more affordable mortgage payment, but still are unable to meet their home loan obligation, these foreclosure alternative options may be one way in which homeowners can escape their mortgage trouble without doing a great deal of damage to their credit score.