When homeowners lose their homes to foreclosure or participate in a foreclosure prevention program, there are some who don’t take into account that the costs of moving to a new home or relocating to an apartment comes with some expenses which may be difficult to meet. Typically, homeowners who have lost their homes to foreclosure may not be in a financial position to either afford the costs that come with relocating or they may have had problems acquiring a new living arrangement due to a drop in their credit score.
However, there are certain mortgage assistance programs which may help homeowners with relocation assistance costs. As an example, certain plans from the Making Home Affordable Program do offer relocation assistance to homeowners who are struggling to meet their mortgage payments and, as a result, have lost their home.
According to certain policies from the Home Affordable Foreclosure Alternatives program, servicers will provide relocation assistance to homeowners who successfully complete one of these foreclosure alternatives programs and qualify.
There are also certain state-specific programs which may be helpful to homeowners who are facing the loss of their home by also providing transition assistance funding to aid homeowners when they relocate to a new living arrangement. These programs which have been administered by state housing agencies through funding provided by the Hardest Hit Fund may differ from state to state, but housing agencies and even servicers may be working to help homeowners with relocation assistance through these plans.
However, homeowners may have to contact their state’s housing agency or speak with their servicer to see if relocation assistance is available for their specific mortgage situation.