Homeowners have feared foreclosure or bankruptcy since many are falling upon difficult economic times in terms of their financial situation. Some homeowners have either seen a cutback in their income due to trouble at their place of employment or have faced unemployment, which is a common problem for millions of Americans at the present time.
However, home loan foreclosure and bankruptcy prevention programs have been made available to homeowners who are in need of a more affordable mortgage payment. Homeowners fall into a variety of categories and this has necessitated various programs to help meet specific assistance needs. For instance, unemployed homeowners may be able to obtain assistance through the Home Affordable Unemployment Program or a homeowner with an underwater mortgage may find they can obtain a more affordable home loan through underwater refinancing options.
Traditional modifications and in-house mortgage assistance plans from mortgage servicers have also been made available, not to mention modifications on second lien and programs like deed in lieu of foreclosure plans have also benefited some. Foreclosure or bankruptcy is something that many homeowners have fought hard to avoid but there have been instances where a homeowner simply could no longer afford their home and had no other options.
While certain foreclosure or bankruptcy prevention programs, like the deed in lieu of foreclosure plan, can allow homeowners to avoid the foreclosure process or having to file bankruptcy by simply surrendering the deed to their home, there are more plans that are now available to help homeowners obtain a more affordable payment on their home loan. The Making Home Affordable Program, the Department of Housing and Urban Development, the Federal Housing Administration, and specific mortgage servicers have all been proposing various mortgage aid options.
Through these various programs some homeowners may be able to avoid the loss of their home or the need to file bankruptcy by either finding a more affordable home loan payment plan or by surrendering their home in the case where they can no longer afford their payments even if assistance plans were in place. While some of these options may be less desirable than others, distressed homeowners may now have more ways than before in which they can avoid foreclosure and possibly save their home.