Homeowners who may face foreclosure on their home due to sudden personal financial problems may qualify for foreclosure alternative options on their mortgage. Numerous homeowners have attempted to find home loan payment solutions through plans like modifications, but in cases where unemployment or underemployment make it impossible for homeowners to continue owning their home, there may be a way to avoid damage to one’s credit score.
For homeowners who may have an underwater mortgage, which has caused some difficulty, and inevitably face the loss of their home for this reason, short sales could be helpful. Homeowners who work with their lenders to find a buyer for their home through a short sale program are typically able to rid themselves of their underwater mortgage obligation and do a minimal amount of damage to their credit score as a result.
Yet, where a homeowner may simply have seen a drastic reduction in income, deed-in-lieu of foreclosure programs are available which can help homeowners surrender their home without going through the foreclosure process. Foreclosures have been a major problem for numerous homeowners, but those who have suddenly been unable to meet their mortgage payments due to, again, factors like unemployment or a reduction in their wages, deed-in-lieu of foreclosure programs have been offered as a way to assist homeowners out of their mortgage obligations.
Understandably, these alternative plans are not optimal for some homeowners, but they can be helpful for those who face the loss of their home to foreclosure. Homeowners who may have hit a difficult financial time in their life may be able to use these alternatives as a way to avoid the foreclosure process, but still be in a position to reenter the housing market in the near future when their financial situation and income improves.