Foreclosure alternative plans have been made available to homeowners who have attempted to prevent the loss of their home but due to financial circumstances have been unable to continue meeting their monthly mortgage payments. These foreclosure alternative plans are hoped to allow homeowners who have attempted to save their home but were unsuccessful to face the loss of their home without going through the foreclosure process.
Many feel that homeowners who take part in a foreclosure alternative plan may be able to rebuild their financial life in a much timelier manner than if they had gone through formal foreclosure proceedings. In cases such as this, homeowners who can take part in a foreclosure alternative option may be able to reenter the world of home ownership in a shorter time once their financial situation improves.
Some homeowners, like those who have an underwater mortgage, have chosen to simply default and walk away from their home loan obligation, which can cause one’s credit score to take a big hit. Yet, short-sale options in deed in lieu of foreclosure plans have been offered to homeowners who may have been unsuccessful in their foreclosure prevention efforts, which again, may benefit these homeowners in the future if they attempt to obtain a mortgage once again.
While it’s understandable that homeowners want to do all they can to avoid foreclosure at all costs, there are some who are simply in such poor financial condition due to factors like unemployment that saving their home will not be possible. For homeowners in this case, deed in lieu of foreclosure plans or short-sale options for those who cannot afford an underwater mortgage can be beneficial despite the fact that they may not be the optimal choice for homeowners who are facing troubling financial times.