Foreclosure is a very dreadful situation for the homeowners in the USA. In this situation, they may end up losing their homes. Upon defaulting on mortgage payments for a stipulated amount of time, the homeowner runs the risk of losing the house. There are many options to forestall such a circumstance and it is important to be informed and aware of the options open to the homeowner. Professional loan modification firms can give clients the right options which they can take in other to either save their homes or let the homes go without hurting their credit ratings.
One of the ways of avoiding a foreclosure is having a professionally negotiated and drawn out contract for a short sale. Many loan modification consulting firms help their clients avoid a foreclosure if they cannot keep up with their mortgages. Allowing a house to go into a foreclosure sale and then having an auction for the house as demanded by law are unacceptable for the homeowner.
In a short sale, the homeowner looks for a buyer who buys off the house completely and the former homeowner can be relieved from the mortgage without hurting their credit worthiness. The lender who is the bank also takes less than the balance owed by the client. This is still a win-win situation for all because the value of houses is never stable and the lenders could eventually lose money.
There are certified distress property experts (CDPE) who prepare the reports properly so that the lenders believe them. There are also loan modification professionals that can assist homeowners in taking the right decisions for themselves which will not hurt their credit ratings.