KENNEWICK,Wash.-- Foreclosures have started looking like a reality for many homeowners. Foreclosure rates are up in the Tri-Cities, but they're not nearly as high as they are nationally.
Banks and lenders don't want people to foreclose on their homes. So, some options for avoiding foreclosure include a repayment program, where the bank will divide your late payments up and add smaller amounts of money to future payments. This is usually a good option if you're only two to three months behind.
Owner of American Home Funding Barbara Davis explains a second option called "Loan Modification." She says, " The loan modification is going through the process with the lender and saying, 'Look I can't afford this, but I can afford this. Help me secure a rate.'"
Two other last resort options are a deed of trust in lieu of sale, or, simply put, you'll be leasing the house from your lender until you catch up, and a short sale, which is trying to quickly sell your home for the value of the loan.
Lenders will work with you to avoid foreclosure, because if you foreclose, the lender assumes responsibility for the home, which costs them money in taxes and fees for finding someone else to buy the home.