Homeowners who face foreclosure are looking for ways to make their mortgage payments more affordable through modifications and other home loan assistance plans. However, there are those who simply can no longer avoid the loss of their home, and as a result, have turned to foreclosure alternative programs which have allowed some homeowners to avoid the foreclosure process and taking a hit to their credit score.
Short sell opportunities for homeowners with an underwater mortgage and deed in lieu of foreclosure plans have been made available for those who have attempted to find mortgage payment solutions but were unable to make their home loan payments more affordable. There are a variety of economic factors that have caused strains for homeowners, most notably unemployment, and for this reason there have been foreclosure prevention programs offered to the homeowners may more easily rebuild their financial life after the loss of their home.
Homeowners who have lost value in their home and owe more on their mortgage than their home is worth can short sell their home and, for those who qualify, the remaining balance they owe be forgiven. Short sales require an agreement between a mortgage servicer and homeowner where the short sale will meet the requirements of a homeowner’s mortgage obligation in the eyes of their servicer and homeowners will be able to escape a bad situation.
Deed in lieu of foreclosure plans are another way in which homeowners may avoid the foreclosure process by surrendering the deed to their home to their servicer. In cases such as this, it’s hoped that homeowners will have less trouble rebuilding their credit score since foreclosure has not left a stain on a homeowner’s credit history.
While housing troubles and employment difficulties continue to plague homeowners, it’s hoped that these foreclosure alternative programs can help those who simply cannot continue owning their home but are willing to work with their servicer so that both lenders and homeowners will not have to face costs for strains that are associated with the foreclosure process.