Many homeowners have been fighting to save their homes from foreclosure through mortgage assistance plans like Making Home Affordable modification plan. However, there are some who have simply gotten into a poor financial situation as a result of factors like unemployment, are unable to benefit from the assistance plans, and are simply left with facing the loss of their home.
However, for homeowners who previously had no trouble making their mortgage payments, or homeowners who had a good payment history, foreclosure alternative options may be available. Foreclosure prevention options, while not an optimal choice for homeowners, can help a homeowner avoid taking a hit to their credit which would be caused from the foreclosure process.
Options like short sales for homeowners who have seen a loss in their home’s value and are left in an underwater mortgage or deed in lieu of foreclosure plans that allow homeowners to surrender the deed to their home in cases where they can no longer make the mortgage payment, have assisted numerous individuals with forgoing the foreclosure process.
Understandably, homeowners will do anything in the majority of cases to save their home but again there are those who simply have fallen upon such hardships that keeping their home is no longer an option. While some homeowners have walked away from their mortgage out of frustration, homeowners who use these foreclosure alternative programs are believed to be in a better position in the long run since they may have an easier time reentering the world of homeownership since they will not have the stigma that comes with walking away or facing a formal foreclosure process.