By Sean A. Kelly

Foreclosure is something that both home owners and mortgage companies may like to avoid. This may be because foreclosures are expensive on the part of the bank while home owners may be forced out of their homes. This may be the reason that many banks and mortgage companies would do their very best to ensure that even the most delinquent of their debtors would not succumb to a foreclosure. US Bank Mortgage program has a unique feature that is designed to assist homeowners who are facing the possibility of a foreclosure. They offer an array of options for homeowners to pick from so that they may be able to keep their homes even when they are in deep financial trouble.

The idea is to educate their customers who may be facing imminent foreclosure on their options to be able to hold on to their asset for as long as they possibly can. Prior to providing advice on the various ways to avoid foreclosure, you may be required by US Bank Mortgage to provide a detailed list of your overall household expenses as well as proof of income in the form of pay stubs, tax returns or profit and loss statements. The reason may be so that they could evaluate your financial situation before you even describe your distress to their appointed counselor. Basically they may assess your situation to see if you might be eligible for the types of financial advice and debt counseling that they may provide. This may be because although you may be facing foreclosure, they would want to make sure that you are genuinely incapable of paying your delinquent mortgage without any form of financial assistance from any party.

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One option that may be offered to you may probably be the Hardship Loan Modification. Generally you may qualify for this option if you can afford regular monthly payments or a slight increase in your payments even after setting aside an amount of money for other monthly expenses. This option may allow you to have your US Bank mortgage rates reduced significantly or to have the term of your loan extended. Either way, your monthly repayment amount may be reduced according to your financial capabilities by rolling interest and escrow shortage from your delinquent payments into your existing loan. An alternative to the loan modification program may be to come up with a new repayment schedule where you may be required to pay your regular monthly payments plus additional funds that might be made up of what was past due. Of course, both you and the bank have to mutually agree on the repayment period.

If you are already facing foreclosure, chances are you may not be eligible for the conventional US Bank Refi program. However, if your mortgage loans belong to either Fannie Mae or Freddie Mac you may refinance your mortgage under the Home Affordable Mortgage Refinancing program also offered by US Bank. This program may suit you if your mortgage balance is greater than the value of your home. You may be allowed to lower your interest rate and monthly payments under this program. Alternatively, if you no longer feel motivated to try to keep up with the monthly payments you may even opt to sell your home by means of a short sale or a deed in lieu of foreclosure. Neither of the two may gain you any profit as your home may be more likely to be sold at a price well below the market rate. However, you may not have to end up with a foreclosure record in your credit report.

The options offered by US Bank are meant to avoid foreclosure as long as it may still be possible. However, this does not mean that anybody could apply or be eligible for the programs. The regulations are rather strict as they are meant to protect home owners who genuinely could not afford to pay their mortgages anymore.

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