It is very stressful to have one's home in foreclosure. There are a few alternatives to foreclosure. For agents the one that might help home owners the most might be a short sale, hoping to have the bank forgive the homeowners on the deficiency between what is owed on the loans and what the home is sold for.
If short sales could help the homeowner start clean, why are they not doing it? Many times they are but all of a sudden if they receive a letter from the banks that they might qualify for a loan modification, they would rather try the loan modification and try to stay in the home even for a little longer. Currently I have a short sale in limbo even after receiving an 80% Down Payment on the purchase agreement because the sellers received a letter from the bank that they might qualify for a loan modification. Even though they tried three times previously with a loan modification and were declined. I am scared that the buyers would walk away and the bank ending on foreclosing on them if there are no current purchase offer. Still I have to do what the sellers want even if it is not best for them.
I just read an article from Yahoo that homeowners are saying that their loan modifications are leading them to being foreclosed. It is a very interesting article and might be good to share with your clients. I am forwarding this to all my clients that are having difficulties to hopefully help them make better decisions.