Foreclosure alternative plans have been sought out by numerous homeowners who have been unable to benefit from a home loan modification or had their trial modification canceled due to their inability to meet the reduced payments. Homeowners who are facing the loss of their home due to sudden economic difficulties have turned to short sales and deed in lieu of foreclosure programs in the hopes of finding assistance to their mortgage trouble.
Many individuals have lost their home due to foreclosure, which is a difficult situation for any homeowner, but this is especially troubling for homeowners who were previously able to easily meet monthly payment obligations. However, these foreclosure alternative plans implemented by HAFA are reported to be low, when compared with the number of trial and permanent modifications that have been canceled.
While there are some sources who feel the reported number of short sale and deed in lieu of foreclosure plans do not indicate the true number of homeowners who have benefited from these foreclosure alternative plans, there are still homeowners who may be uncertain as to how these foreclosure alternative programs can be beneficial.
Obviously, homeowners who can avoid the foreclosure process may take less of a hit to their credit score, which could allow them to get back on their feet financially in a shorter period of time once their personal financial situation has improved. Also, successful completion of these Home Affordable Foreclosure Alternative programs are set to release homeowners from future liabilities related to their mortgage debt.
The good news for homeowners is ,any of the nation’s top mortgage servicers do participate in some form of short sale or deed in lieu of foreclosure program. For this reason, foreclosure alternatives have allowed homeowners who are either suffering from an underwater mortgage or unemployment to escape their mortgage obligation, take less of a hit to their credit score, and be forgiven of the remaining balance owed on their mortgage, if they qualify for and successfully complete these alternative plans.