Homeowners who have attempted to save their home through some form of foreclosure prevention or refinancing opportunity have often found that their attempts have been unsuccessful, and sadly, foreclosure has become a very near reality for their situation. Obviously, modifications, mortgage refinancing, or other home loan assistance plans implemented by mortgage servicers have not always been helpful to homeowners in all cases as factors like unemployment, underwater mortgages, or simple financial strains have led many to face the loss of their home due to hardships.
However, for homeowners who must relocate, there are alternatives to foreclosure which bring benefits for those who qualify. Short sale opportunities for homeowners, typically those who are underwater, have been made available over the past months and programs like the deed in lieu of foreclosure plan have allowed homeowners to surrender their homes to their servicer without having to face a formal foreclosure. Some programs, like the Cash For Keys program, mirror deed in lieu of foreclosure options in that homeowners are given compensation when they surrender their home.
Yet, for homeowners who participate in foreclosure alternatives like short sales or deed in lieu of foreclosure plans, there may be assistance through relocation funds which can be offered. In the Making Home Affordable Program, homeowners who qualify for short sales or deed in lieu of foreclosure options may receive up to $3000 to help with moving expenses and relocation costs.
While there are also some state housing agencies which have used similar relocation compensation programs through the Hardest Hit Fund, these relocation assistance plans have been greatly helpful for homeowners who have qualified simply because of the situation they may be in, in terms of their personal finances and the requirements that come with relocating.
Understandably, homeowners would rather prevent the loss of their homes through a modification or refinancing program, but when foreclosure seems to be inevitable, many homeowners have exhausted their personal finances or may be in a situation where their credit history has dropped due to various difficulties related, again, to factors like unemployment. Usually, many homeowners turn to renting after the loss of their home through either a short sale or deed in lieu of foreclosure program, and these relocation costs can help with simple moving expenses or things like a security deposit which may be required on apartments, for example.
While the state-specific relocation assistance programs may vary, homeowners who can participate in the Home Affordable Foreclosure Alternatives program may be able to, again, receive compensation which can help alleviate the financial burdens which come from relocating after the loss of one’s home.