Many homeowners have been struggling with their home loan payment and have faced foreclosure as a result. There are a variety of assistance programs that have been made available to homeowners but not everyone has been able to gain the assistance they need or can’t afford their home loan payment even when an assistance program is in place.
For homeowners who cannot afford their home loan payment any longer and face foreclosure, there may be options available to allow these troubled individuals to avoid the foreclosure process. Programs like the deed in lieu of foreclosure plan and short sale options have been made available to certain homeowners who can no longer afford their home but have tried every course possible that can be taken in order to make their home more affordable.
Essentially, the deed in lieu of foreclosure program and short sell options have been made available so that homeowners who have suddenly come upon difficult financial times and are now unable to afford their home may avoid the hit their credit score will take due to the foreclosure process. In the deed in lieu of foreclosure program homeowners can surrender their home to their servicer and as a result their mortgage lender typically works with them so that the surrender of their home will not result in foreclosure proceedings.
Short sell options, which are mostly used for homeowners with an underwater mortgage who are having difficulty making their mortgage payments, have been used by homeowners who have seen trouble making their home loan payment that has resulted from the loss of value in their home. Some cases where a homeowner owes more on their home than their home is worth has created a perdicament where mortgage payments are simply not affordable.
While programs like the modification plan and in-house mortgage payment alternative initiatives have been offered from the Obama Administration and mortgage lenders to make home loan payments more affordable, not everyone has been able to benefit from these plans. Even though many homeowners are very frustrated and angry over the current housing situation, those who have few options remaining may still benefit from these foreclosure alternative plans since they may provide them with the opportunity for home ownership again when their financial situation improves.