With the global economic downturn, foreclosure has become a reality for a good number of homeowners. Due to the crisis, you can find businesses losing profits and even closing, which have repercussions such as job losses and decreased work hours and benefits. With this decrease or loss in income, people are finding it harder to make ends meet every month, which leads to people not paying their monthly mortgage payments. And that forces the hand of lenders to begin the foreclosure process.
Although not a lot of homes get actually foreclosed, most homeowners are forced to sell their homes because they can't afford it. Though the home was not foreclosed, transfer of ownership did take place -- basically somebody lost a home. As such, there is more than meets the eye with regard to stop foreclosure statistics.
One way that homeowners can avoid their homes being foreclosed is through loan modification. Modifications can be long term or short term. Through loan modification, borrowers and lenders can discuss the best payment scheme to allow borrowers to keep their homes, while also mitigating losses for the lenders. In a way, lenders and borrowers meet halfway in loan modifications, coming up with a win-win situation for both parties.