Many homeowners have been facing the loss of their home but have been able to escape the foreclosure process due to certain programs that provide foreclosure alternatives. Short sale programs and deed in lieu of foreclosure plans are available for certain homeowners who have either gotten to the point where mortgage assistance is no longer helpful or they are in a situation where their home has grown burdensome due to factors like the decline in home values and these homeowners simply want a way out.
Short sales have been an option for homeowners who may have had underwater mortgage difficulties and were struggling to make their payments or simply wanted to be free and clear of their home loan obligation. Some homeowners with an underwater mortgage simply walked away from their mortgage commitment, but others who were concerned about their credit score chose to short sale in cases where their lender was willing to work with them.
Also, homeowners have in some cases been troubled with a mortgage payment when their home lost value and, as a result of having an underwater home loan, were having difficulty keeping their home. Short sales have been used by a variety of top mortgage servicers over the past months as a foreclosure alternative to homeowners who could no longer make their mortgage payment due to the loss of value in their home.
However, there are cases where homeowners were simply attempting to save their home but were unable to benefit from certain modification or mortgage assistance plan or perhaps were unable to make payments even with a modification or alternative payment agreement. Some lenders have used the deed in lieu of foreclosure option that allow homeowners to surrender the deed to their home and avoid the foreclosure process since this path can cause less damage to a homeowner’s credit. Cases where homeowners have attempted to do everything they can to save their home but came up short gave reason for mortgage servicers to offer this deed in lieu of foreclosure plan so that homeowners could avoid the loss of their home.
There are foreclosure prevention efforts from the Obama Administration’s Making Home Affordable Program and in-house plans from lenders as well. While not all homeowners have found the aid they need, there are various programs available to aid homeowners who face the loss of their home through foreclosure.