Millions of Americans are in need of foreclosure assistance. Numerous programs have been put in place to provide the help needed to keep people in their homes and hopefully making mortgage payments.
Qualifying for one of these programs comes down to your specific situation and what solution makes the most sense.
Possible Foreclosure Programs
- Loan Modification. The first thing anyone ever looks to when trying to avoid foreclosure is loan modification. The ideas is to modify your loan to something more affordable and get back to making on-time mortgage payments.
- Short Sale. Not everyone can get a modification. Short sales are usually the next best thing. It involves you selling your home, but for less than what is owed on the loan. The bank has to sign off on it.
- Forbearance. For people with temporary problems, forbearance offers a solution that gives you temporary relief while your situation that got you in trouble is being resolved.
- Deed-in-lieu of Foreclosure. While the bank does take back your house from you, you are absolved of the money you owed and avoid a public foreclosure process that can be embarrassing to some.
- Cash For Keys. This program actually does not avoid foreclosure, but rather is an cash incentive for you to walk away peacefully once the foreclosure process is complete.
There are other programs not mentioned here. Typically, most people start with loan modification and most that avoid foreclosure will probably do that or a short sale.
Qualifying for one of these programs comes down to your individual situation so consult with a loss mitigation specialist to find out what is best for you.
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