Many homeowners have attempted to save their home through a variety of mortgage assistance plans like home loan modifications or underwater refinancing opportunities, but there have been cases where foreclosure was simply inevitable. Yet, foreclosure alternative plans were offered to homeowners due to the negative employment and housing situation our nation is facing.
Plans like the deed-in-lieu of foreclosure program and short sale options have been created in order to allow homeowners who face the loss of their home to avoid the foreclosure process. Foreclosure can be costly for financial institutions and can do damage to a homeowner’s credit score, which may prevent or hinder them from buying a new home in the future when their financial situation improves.
Deed-in-lieu of foreclosure plans allow homeowners to surrender the deed to their home and avoid the foreclosure process as long as their lender is willing to work with them in this aspect. Many mortgage servicers allow this program to occur simply because banks wish to avoid foreclosures in many cases. Also, for homeowners who may be suffering from an underwater mortgage, some mortgage lenders have been willing to work with these individuals to short sell their home so that they can escape an underwater mortgage situation, which has been quite troubling for many homeowners across the nation.
Yet, it’s understandable that homeowners wish to avoid foreclosure at all costs but there are certain situations where no mortgage assistance can be of assistance and times when lenders are simply unhelpful. However, many banks have been working in these areas of foreclosure alternatives in order to allow homeowners who may have suddenly come upon the inability to pay their mortgage to escape foreclosure so that they may more easily reenter the world of homeownership when their finances and employment situation improve.