Foreclosure prevention programs and alternatives have been offered by variety of mortgage servicers and the Obama Making Home Affordable Program. Numerous homeowners face the loss of their home for a variety of reasons, most often unemployment, but there have been programs set in place to help homeowners who are dealing with possible foreclosure.
Obviously, one of the most common foreclosure prevention plans is the Making Home Affordable modification program. Mortgage servicers have been helping homeowners obtain a lower home loan payment obligation by offering these modifications, but there have been instances where homeowners have been denied assistance and, as a result, in-house programs and alternative assistance was needed.
However, foreclosure alternative plans were also provided to homeowners who had simply run out of options or been denied some form of mortgage assistance. In cases where homeowners were previously able to make their home loan payment, but due to financial problems, fell into a position where they could no longer afford their home, these alternative plans were created to help homeowners avoid foreclosure process.
Commonly, plans like the deed in lieu of foreclosure option are used by homeowners who can surrender their deed to their mortgage lender and avoid facing foreclosure. Plans like these foreclosure alternative efforts have been set in place to help homeowners who can no longer afford their home loan but may find themselves in a better financial position in the future. By allowing homeowner to forgo foreclosure, it gives the homeowner a better opportunity of returning to the housing market in the future and may offer them a better chance at getting a home loan when their finances improve.