Many homeowners have attempted to save their home through a variety of foreclosure prevention methods like home loan modifications or alternative repayment plans. Homeowners have sought out principal reduction plans, unemployment assistance, forbearance on their home loans, and even lower interest rates so that they can avoid foreclosure but there are cases where homeowners simply can no longer benefit from mortgage assistance that is given.
However, with the massive layoffs and unemployment troubles that have occurred over the past, and continue in some areas, there are mortgage servicers who are offering homeowners the opportunity to avoid the foreclosure process through foreclosure alternative programs. These programs are set in place so that homeowners who are going to lose their home will be able to avoid the foreclosure process and take less damage to their credit score.
For instance, in areas where a homeowner has an underwater mortgage, short sale options may be available so that a homeowner can sell their home without having to pay excess principal costs in a case where they owe more on their home than their home is worth. Also, deed in lieu of foreclosure programs have allowed some homeowners to surrender the deed to their home and, as a result, mortgage servicers work with these homeowners so that they can avoid the foreclosure process despite the fact that they are losing their home.
It’s understandable that no homeowner wants to lose their home and the financial difficulties that many have faced over the past months have caused numerous homeowners to face foreclosure and other mortgage troubles. Yet, these foreclosure prevention plans are hoped to aid homeowners who can no longer afford their home by allowing them to take less damage to their credit score so that they may reenter the housing market and the world of homeownership in the future when their financial situation improved.