Some homeowners who have lost their home and are now faced with relocating to a new living arrangement, like an apartment, may have opportunities for transition assistance that can provide funding to help with costs like moving or a security deposit. Numerous homeowners have found themselves in a position, over the past few months, where they are unable to meet their mortgage payment requirements and, as a result, foreclosure has been their only option.
There are assistance programs, like modifications, available but there are homeowners who have simply hit such a difficult time in their financial life that these forms of assistance have not been able to prevent the loss of their home. Yet, these transition assistance programs which are available from sources like the Making Home Affordable Foreclosure Alternatives plan and state assistance plans, like the Keep Your Home California plan, do offer some homeowners monetary aid when they are relocating.
However, transition programs which provide assistance to homeowners often require that an individual had participated in either a deed in lieu of foreclosure plan or a short sale on their home. Foreclosure alternatives programs, like short sales and deed in lieu of foreclosure options, are usually available to homeowners who, previously, had no problem making their monthly mortgage payment but have come upon a situation where, either due to job loss, cutbacks in their wages, or factors like an underwater mortgage, they simply can no longer afford their home.
Some homeowners who may qualify for a short sale or deed in lieu of foreclosure plan are not necessarily guaranteed transition assistance, but these types of relocation programs are usually associated only with cases where a homeowner has qualified for and participated in one of these alternatives with their mortgage servicer. Some financial institutions have been wary about granting these foreclosure alternative plans as there have been homeowners who have attempted to take advantage of their situation and escape a mortgage obligation which they may be able to afford. As a result, not all homeowners may qualify for a foreclosure alternative or a transition assistance program. Yet, homeowners who are in a position where foreclosure may be inevitable are prompted to talk over these relocation assistance opportunities with their servicer, as early as possible, so that a deed in lieu of foreclosure option may be worked out or a short sale buyer can be found.