Foreclosure is becoming a problem for more and more homeowners as economic conditions have not improved to a point that has allowed the job market to begin reabsorbing employees who have lost their job over the past months. Yet, as a result of so many widespread foreclosures, homeowners are having to find alternative living arrangements and are being met with relocation costs that have been troublesome for many.
Yet, there are programs which may be helpful to homeowners who are relocating as they can provide relocation cost assistance. One example of these relocation assistance programs is through the Foreclosure Alternatives Program, which is an extension of the governmental Making Home Affordable Program.
Some homeowners may be able to participate in a deed in lieu of foreclosure plan, as an example, which allows a homeowner who has been unable to either meet their home loan costs or sell their home to surrender the deed to their servicer, and this will be taken as a “full payment” by the bank.
Also, homeowners who are able to participate in one of these alternatives to foreclosure, may have the opportunity to receive up to $3,000 to help with relocation costs. Obviously, homeowners who may have seen their credit score drop or have come upon difficult financial times may be unable to meet certain expenses, like moving costs or security deposits for apartments, so it’s hoped that this particular funding will be beneficial to homeowners who have been displaced.
Yet, there are also some state housing agencies who are implementing similar programs, like the California Keep Your Home initiative which offers a Transition Assistance Program.
Having to relocate is obviously a stressful predicament for homeowners who have lost their home to foreclosure, but it’s hoped that those who have been able to participate in these foreclosure alternative plans will be able to make an easier transition thanks to funding provided through these various mortgage assistance options.