Foreclosure has become a major problem for many homeowners across the nation as of late since there have been difficulties that have arisen in the job market, which have caused homeowners to either lose their job or suffer cutbacks in their income. These personal financial troubles for homeowners have obviously caused difficulty when it comes time to make their monthly mortgage payments, among other things, so foreclosure prevention and alternative programs have been created.
Homeowners have been able to use modifications and refinancing as a way to lower their monthly mortgage payments so that they may avoid foreclosure on their home. Modifications have been offered from many of the nation’s top mortgage servicers from both the Obama Administration’s Making Home Affordable Program and from in-house plans available directly from a homeowner’s servicer.
Low interest rates have made more affordable home loan payments available for homeowners, modifications have given homeowners a lower mortgage obligation, and other forms of assistance have given homeowners the means which they need to budget their income in a way that allows them to keep their home.
Yet, there have been troubles for homeowners that are so extreme that they are unable to benefit from any of these assistance plans. For these cases, there have been options made available in the form of deed in lieu of foreclosure programs, which allow homeowners to surrender the deed to their home and work with their lender in order to forego the foreclosure process. This can be helpful for a homeowner in the future as a deed in lieu of foreclosure program will typically do less damage to a homeowner’s credit score than a foreclosure.
While there are options like short sales for certain homeowners, like those who have an underwater mortgage, foreclosure prevention and alternatives have been giving homeowners a way to either save their home or at least avoid foreclosure so that when more stable economic times return homeowners will be in a situation where they can more easily start anew.