Mortgage payment difficulties and the threat of foreclosure has plagued many homeowners as housing troubles continue for numerous individuals across the nation in a variety of ways. While there are foreclosure prevention opportunities through modifications made directly from mortgage servicers or from the Obama Administration’s modification plan, some homeowners have had to face the inevitable fact that they are going to lose their home.
However, foreclosure alternative programs from the Obama Administration’s Making Home Affordable Program may offer homeowners the opportunity to avoid the foreclosure process even though they are still losing their home. Typically, homeowners who have been benefiting from these foreclosure alternative plans have been able to take less damage to their credit score, which could allow them to repair their finances much easier and reenter the housing market in a timelier manner.
Options like short sales for underwater homeowners or deed in lieu of foreclosure programs have allowed homeowners to surrender their home or sell their home before the foreclosure process is completed. In some cases where homeowners have suddenly seen a reduction in their income and have been unable to meet their monthly mortgage payments, these foreclosure alternative programs have been helpful.
Also, there are those who feel that by using a foreclosure alternative plan, a homeowner who has suddenly come upon an instance where they can no longer meet their mortgage payment, but previously were able to do so, will show good faith when it comes to working with their mortgage servicer. Understandably, no homeowner wants to surrender the deed to their home, but homeowners who have participated in a deed in lieu of foreclosure plan or short sale may be seen in a more positive light by mortgage lenders in the future than those homeowners who simply chose to default and walk away.