Foreclosure and Short-Sale were the two leading options for homeowners who owe more on their mortgage than the value of their homes. That should not be the case anymore as the government has recently revamped the alternative, Hope for Homeowners, to make it a viable option for homeowners who owe more on their house that their house is worth, instead of foreclosure or short-sale.
Affected homeowners are encouraged to take a second look at the Hope for Homeowner program if they are having problem making their mortgage payment. Lenders and investors are now seeing the need to participate because the program offers quick recapture of principal from their non-performimg residential mortgage portfolios and at the same time helping homeowners avoid foreclosure and minimize their losses.
Foreclosure or Short-Sale should be the absolute last resort when all else have failed. This is just one man's opinion and so let me know if you other ideas, suggestions or nightmares.