Relocation assistance is one of the benefits that underwater and unemployed homeowners may have if they use various options available to forgo foreclosure through short sales or deed in lieu of foreclosure plans. Numerous individuals have found that they are unable to sustain their home loan payment, have sought out foreclosure prevention assistance, but for various reasons have then discovered that meeting payments even within these assistance plans is simply impossible in the current financial state.
Yet, for those who have been particularly distressed due to factors like an underwater mortgage where negative equity has caused their mortgage payment costs to become too problematic or in cases where unemployment is the root of the problem, some homeowners have been offered foreclosure alternatives through either short sale programs or deed in lieu of foreclosure opportunities.
Typically, homeowners who qualify for a short sale due to either being in an underwater mortgage for unemployed will enter into an agreement with their servicer to sell their home at a loss and upon the completion of the sale they will be free and clear of their mortgage obligation due, again, to unforeseen financial hardships that were experienced. Yet, a deed in lieu of foreclosure plan is also available to certain distressed homeowners and simply allows them to surrender the deed to the property to their servicer and, again, they will be allowed to forgo the foreclosure process and walk away from their home without being pursued by their bank for additional costs.
However, many of the homeowners who qualify for these programs have fought to keep their home and, in many cases, have seen their credit score drop due to missing payments or other financial troubles. When this occurs, homeowners who are granted any foreclosure alternative program may have a difficult time either affording costs associated with moving or when looking for an apartment or alternative living arrangements, security deposits or other fees that may be required may also be quite expensive. Yet, these relocation costs are available to homeowners who qualify for these foreclosure alternative plans and are hoped to make the transition to a new living arrangement more affordable to homeowners who have lost their home due to hardships.
Obviously, numerous homeowners would rather save their home than enter into a foreclosure alternatives plan, but when modifications, refinancing, or mortgage forbearance opportunities fail, homeowners that are given the option of avoiding a formal foreclosure process by participating in one of these programs may stand a better chance at reentering the housing market sooner once they get back on a firmer financial ground. While short sales and deed in lieu of foreclosure plans are not perfect they do offer this option to homeowners who may have entered into a difficult time in their financial life but would once again like to own a home at a later date.