Foreclosure has been a concern for many homeowners as more individuals face the potential loss of their home through processes like foreclosure or, in some cases, bankruptcy. However, there are foreclosure prevention and foreclosure alternative plans that have been made available over the past months to help homeowners who are having a difficult situation when it comes to making the mortgage payment.
Certain foreclosure prevention efforts like home loan modifications have been made available from sources like the Making Home Affordable Program, in-house plans from mortgage servicers, or underwater home loan refinancing opportunities from the Obama Administration and FHA. Yet, many homeowners, like those seeking a home loan modification, have become angry and waged complaints against many mortgage servicers who they feel are not doing all they can to help homeowners who may face the loss of their home.
However, some homeowners have been unable to obtain foreclosure prevention assistance plans from sources like modifications or underwater refinancing opportunities, and have run out of options which they may use to save their home. In these sad cases, foreclosure alternative plans may be helpful, despite the fact that they are not ideal. Deed in lieu of foreclosure plans that been offered to homeowners who face the loss of their home simply because they can no longer afford their mortgage payment.
In cases where homeowners have been able to meet their monthly mortgage payment but have suddenly come upon difficult financial times, a deed in lieu of foreclosure option may be helpful to homeowners since it will allow them to take less of a hit to their credit score. While no homeowner wants to lose their home, these foreclosure alternative plans can make it easier to rebuild one’s financial life and even obtain another mortgage when their financial situation becomes more stable and they can once again afford the costs of homeownership.