Homeowners who have had trouble finding the affordability they need in their mortgage through programs like home loan modifications have had opportunities to participate in foreclosure alternative plans like a deed in lieu of foreclosure program. Essentially, homeowners who qualify for this type of foreclosure alternative will simply surrender the deed to their home, which will typically clear a homeowner of remaining their remaining obligation.
However, despite the fact that this plan may not be widely available, it has assisted some homeowners who were previously able to pay their mortgage payment obligation without trouble, but due to factors like unemployment, have suddenly come upon a situation where they cannot afford their home loan any longer.
The good news for homeowners who may be in a troubling spot in their financial life is that some foreclosure alternative programs may qualify homeowners for assistance when it comes to moving costs. According to the Making Home Affordable Program, homeowners may qualify for up to $3000 in relocation costs, which will obviously help homeowners who are moving and may need aid when it comes to relocating or meeting costs associated with expenses like security deposits on apartments.
Yet, these foreclosure alternative programs may not always be an option for certain homeowners as banks have usually required homeowners to apply for a home loan modification or other foreclosure prevention plan. While these options have not been open to every homeowner who has come upon a difficult time in their financial life, deed in lieu of foreclosure programs have typically been available to homeowners who had an excellent payment history on their home loan and suddenly saw their financial life take a drastic hit.
Obviously, many financial institutions may require a homeowner to show proof of this financial hardship before opportunities for a deed in lieu of foreclosure option and assistance with moving costs may be granted, but for homeowners who have attempted to save their homes through other means but are simply no longer in a financial position to meet these costs, foreclosure alternatives can be greatly helpful in not only avoiding formal foreclosure but aiding homeowners who must relocate to a new living arrangement.