Alternative programs have been offered to help homeowners who may be facing foreclosure due to the inability to find an affordable solution to their mortgage difficulties. Programs like the home loan modification plan and alternative assistance options have been made available to certain homeowners who were facing the loss of their home. However, some homeowners have either been denied the assistance they need or simply can no longer afford their home loan even when an assistance plan is available. Foreclosure alternatives have been offered to aid these homeowners so that they can minimize any damage to their credit score.
Programs like deed in lieu of foreclosure plans and short sale options have been offered to homeowners who have been unable to benefit from alternative mortgage assistance plans. While modifications, unemployment assistance plans, and even underwater mortgage programs have been set in place, there are many homeowners who have been unable to find the help that they have been looking for but there may be hope even if the loss of their home is unavoidable.
Deed in lieu of foreclosure programs have been made available to homeowners who willingly surrender the deed to their home. Many mortgage servicers will allow a homeowner to avoid the foreclosure process if they surrender their deed and, in some cases, homeowners are given a set period of time before they must evacuate their home which has allowed many to make alternative living arrangements.
Short sales have also been an option for some homeowners, like those who are suffering from an underwater mortgage, when paying monthly payments on a home whose value is less than the amount owed has become burdensome. Homeowners who owe more on their home than their home is worth are obviously troubled but some are simply unable to continue paying on a home whose value has decreased.
While these foreclosure alternative plans are not optimal since homeowners have been desperately trying to save their home, these options may be a way for homeowners to avoid damage to their credit score which could prevent them from buying another home when their financial situation improves. Obviously, homeowners are being prompted to seek out modifications or in-house assistance options from their mortgage lender, but in cases where assistance is unavailable homeowners may still benefit from these alternative plans which will allow them to avoid the foreclosure process and may put them in a better position to begin rebuilding their finances in the future.