Fannie Mae and Freddie Mac have announced the replacement to HAMP, it will be called Flex Modification, and is designed to help homeowners Stay in their home and avoid foreclosure while a work out plan is put together. The good news is the Flex Modification has been changed and updated to incorporate needs changes that were learned working with the old programs. The new program should work smoother as Lenders, Fannie, Freddie and Consumer Advocates all worked together to smooth out some of the wrinkles. This should save Homeowner, Lenders and the Tax Payers money in the long run.
Fannie and Freddie both have programs to keep the homeowner in their home during the short sale process. If a modification can not be reached the next logical step is the short sale. The benefits are that the home is never vacant and a fair market value transaction is completed. This provides less stress on the owner in that they will not be evicted, the credit report will not show a foreclosure and they will have a better fresh start after the short sale.
If the short sale does not appear to produce any buyer, you may still have the option of Dee-in-Lieu. This is when the homeowner turns the house and keys over to the bank. No eviction takes place because the owner voluntary turn the keys over to the bank. This is sometime referred as Cash for Key where the lender will assist in expenses such as moving.
So as you can see we have more then one option available, let work it to the end for the best results. Remember no action will always lead the the last result foreclosure. The worst option is for you to go to the end of the foreclosure process you lose everything house, credit and sometime your belongings.
HARP another program different from HAMP was extended until September 30, 2017. Don't confuse them.