Remember about a decade ago, when the qualifications to be approved for a home loan were lowered? It was the government's effort to boost the US economy. Sadly, it did exactly the opposite! Many Americans were applying for mortgage loans that they could not afford. In many cases they were given loans whose interest rates increased over time. Some of these unsuspecting borrowers couldn't pay back their loans so the foreclosure epidemic began.
New laws were put into place by the government to help prevent the foreclosure problem affecting so many Americans. We have all heard about alternative options for borrowers on the news. These laws helped home owners remain in their homes by restructuring their mortgages. In some cases their only option would result in a short sale but they would still avoid a credit crushing foreclosure.