Even though there are many options for saving your home from foreclosure, almost all of them rely on your ability to meet your revised payment obligations.
Loan modification and foreclosure refinance programs can be forgiving about your credit. They can also be flexible about the upside-down or underwater nature of your mortgage. But at the end of the day, if you cannot afford even the modified loan payments, a refinance just wouldn’t make sense.
This is why long-term unemployment continues to have such an outsized impact on our housing industry and the foreclosure crisis. The programs launched by federal and state governments to help homeowners in distress do little for families who must decide between food or the mortgage. In such cases, the right answer is a no brainer.
Unfortunately, even though the logic of income qualification is understandable, the truth is that our houses are more than just pieces of real estate. They are our homes, upon which we attach so much of our emotions and our selves.
