As home loan difficulties continue to plague many homeowners there are some who have attempted to save their home through modifications or other mortgage assistance plans but have simply found themselves in a situation where they can no longer afford their home loan payment. Unemployment, the most common cause of mortgage difficulties, has not been combated to a point where the countless homeowners who have lost their job have been able to find another source of stable income. This has created situations where homeowners are simply unable to pay their home loan payment, but there have been mortgage foreclosure alternative programs available for individuals in the certain situations.
Short sale options and deed in lieu of foreclosure plans have been offered to homeowners who have lost their job and are struggling to make ends meet. For some, unemployment benefits are the main source of income in their household and, as a result, homeowners have been unable to either obtain a mortgage modification or benefit if they did. In order to avoid a wave of foreclosures across the nation, lenders are allowing homeowners to either short-sale or surrender their deed and the avoid foreclosure process.
For homeowners who are facing mortgage difficulties due to underwater mortgage problems, a short sale may be one way these homeowners can be rid of their home which has lost a substantial amount of value. However, homeowners who can simply no longer afford their mortgage payment, a deed in lieu of foreclosure program may be a way that a homeowner can surrender their home and not face the damage to their credit score that comes with foreclosure.
While lenders handle these situations differently, in many cases, homeowners should be aware that these foreclosure prevention programs are available. For instance, in the Making Home Affordable Program, 8,245 homeowners, with the eight largest mortgage servicers, who had their trial modification cancelled were given either a short sale or deed in lieu of foreclosure option, while 22,881 who were denied a trial modification were aided through one of these foreclosure alternatives.
Not every homeowner may be able to benefit from either a short sale or deed in lieu of foreclosure plan, but homeowners who feel they have no options remaining are being told to talk with their mortgage servicer in order to find a foreclosure prevention option that will be helpful for their personal situation.