Home Loan Foreclosure Leads Many To Turn To Renting Options–Relocation Assistance Plans May Be Available

Numerous homeowners, and Americans in general, seem to have a negative view of the housing market, according to a report from Fannie Mae, as many feel that buying or selling a home is not a good idea at the present time.  Also, an interesting piece of the report stated that certain individuals are looking to rent rather than reenter the housing market anytime soon.

Homeowners who face the possibility of foreclosure, due to delinquency or personal financial trouble, often see renting as their only choice, as not many are looking to jump back into the housing market.  However, some good news has come in the form of relocation assistance from certain mortgage assistance programs which may help cover the costs of transitioning to a new living arrangement.

For some homeowners who participate in the Making Home Affordable Foreclosure Alternatives Program, relocation assistance may be available in cases where homeowners have tried to save their home, through means like a modification, but were unable to do so and are attempting to work with their servicer through either a deed in lieu of foreclosure program or a short sale.

While there are state-specific programs in some areas that mirror this transition assistance plan, homeowners may have to contact their state’s housing agency for eligibility requirements for their situation.

Yet, most of these programs will require that a homeowner work specifically with their servicer to produce a deal where they either surrender their home or find a buyer and sell the home at a loss.  While this is not an optimal situation for homeowners, there can be a silver lining in the form of these relocation assistance opportunities.

Relocating to an apartment or other renting situation will obviously require the basic costs that are usually associated with moving, which can be difficult for homeowners in a bad financial position, so these relocation plans can be helpful with moving or for meeting costs on expenses like a security deposit.  Again, these plans may not be available to all homeowners but there are opportunities available for homeowners who may qualify for a foreclosure alternatives program or a state-specific mortgage assistance plan.