Many of the nation’s top lenders are offering foreclosure prevention and alternative plans to homeowners who have been struggling to make their home loan payments. Unemployment and other financial troubles have plagued many homeowners over the past months and as a result homeowners have needed a way in which to make their home loan more affordable or, in worst case scenarios, homeowners who have attempted to save their home but were unable to do so have been seeking ways to avoid the foreclosure process.
While some homeowners have been using modifications or other mortgage assistance plans from the Making Home Affordable Program to make their home loan payments more affordable, there have been those who are unable to benefit from these types of mortgage assistance options. Yet, foreclosure is something that homeowners, obviously, wish to avoid if they have simply reached a point where they can no longer afford their home loan payment.
Mortgage foreclosure prevention and alternatives like short sale programs and deed in lieu of foreclosure plans have helped many homeowners in this area and, as a result, homeowners who have faced the loss of their home have been able to do so without taking the hit to their credit score that comes with foreclosure. Homeowners who are able to benefit from these programs have escaped their mortgage debt with minimal damage to their personal financial situation, which is something that can be beneficial in the future.
While underwater mortgages have caused trouble for many homeowners and, again, unemployment has wreaked havoc on the housing market, short sales and deed in lieu of foreclosure plans have benefited homeowners by allowing them to either sell their underwater home or surrender the deed to their house, and again, avoid going through foreclosure. Some homeowners are facing a very tough financial time at the present but these individuals who are able to avoid the foreclosure process may have a better option in the future when purchasing a home or repairing their credit since these foreclosure alternative options will not do as much damage to their credit score.
Various mortgage services and lenders deal with these situations differently, but homeowners can work with their lender or consult sources like the Department of Housing and Urban Development for more resources and information on these foreclosure prevention options.