Homeowners have struggled with their mortgage payments and have even had difficulty meeting their home loan payment obligation when assistance plans like home loan modifications are in place. In cases such as this, foreclosure alternatives have been made available in the form of options like short sales or deed in lieu of foreclosure plans.
Reports indicate that homeowners who are having difficulty with the Home Affordable Modification Program are finding assistance through these Home Affordable Foreclosure Alternative Programs, which provide homeowners with various mortgage difficulties options to avoid the foreclosure process.
Homeowners who face foreclosure typically seek out these alternative programs simply because they will cause less trouble for a homeowner, in terms of their credit history and score, in most cases. Homeowners who were suddenly hit with financial problems and, as a result, were unable to make their mortgage payment may qualify for these programs and, when financial difficulties in their lives subside, they could reenter the world of home ownership more easily.
Short sale options have been used by homeowners who have an underwater mortgage and owe more on their home than their home is worth. Cases where homeowners have seen a drastic drop in their home’s value have benefited from these programs since some homeowners have been unable to make their mortgage payments as a result of their underwater situation.
Yet, homeowners who may use the deed in lieu of foreclosure plan simply surrender the deed to their home to their mortgage servicer and can avoid the foreclosure process as a result. While these programs are not perfect, as homeowners would rather save their home than enter into a foreclosure alternative plan, it’s hoped that these assistance plans will allow homeowners to escape their mortgage debt without doing damage to their credit score which could take years to repair.