Recently, the Department of Veteran Affairs stated that homeowners who are able to participate in a short sale or deed in lieu of foreclosure program should also be provided with relocation assistance as they move to a new living arrangement. Obviously, there are relocation assistance plans available to homeowners who participate in the Home Affordable Foreclosure Alternatives program in some cases, and as a result, more homeowners who have attempted to save their homes from foreclosure but were unsuccessful are being aided through these relocation funds since these alternatives to foreclosure can be more beneficial in some ways.
For homeowners, relocation assistance can help as the simple costs associated with moving, finding a new living arrangement, or meeting costs when acquiring an apartment for instance are something that may be beyond a homeowner’s means when they are in a troubling financial situation. Typically, homeowners who have participated in either a short sale or deed in lieu of foreclosure program having first been considered for foreclosure prevention options like home modifications, but were obviously unable to find the affordability they needed to remain in their home.
It goes without saying that homeowners who are unemployed or who are not in a financial position where they can afford a modification may not have the ability to afford costs that may come with moving, so for this reason, it’s hoped that these relocation assistance plans can be beneficial to homeowners who qualify for these short sale or deed in lieu of foreclosure plans. Simple costs like a security deposit on an apartment may be beyond a homeowners means in some cases, and if a homeowner has seen their credit score drop due to financial hardships this could create additional costs when it comes to acquiring an apartment as well.
Yet, it’s hoped that VA homeowners will also be able to transition from their current home into their new living arrangement in a smoother fashion since this relocation assistance may be offered in the amount of up to $1,500. Understandably, homeowners who have lost their home through either a short sale or deed in lieu of foreclosure program have done so after seeking other forms of assistance, but it’s hoped that homeowners who are helped in finding a new place to live will be able to get back on their feet in a timelier manner and, hopefully, reenter the housing market sooner once they have found more stability in their financial life.