Homeowners who may be seeking out short sales on their mortgage or a deed in lieu of foreclosure plan that may help them avoid a formal foreclosure proceeding when they can no longer afford their home, may also find that relocation assistance has been made available for displaced homeowners through not only the Making Home Affordable’s Foreclosure Alternatives Program but there are also some state-specific plans that are offering options for homeowners to use these forms of foreclosure avoidance and will offer assistance to homeowners who may need to meet certain costs with relocating.
Understandably, many homeowners have come upon a difficult financial time in their life to the point where the severity has not allowed them to benefit from options like home loan modifications or other foreclosure prevention plans. Many of these individuals are those who may be facing trouble from unemployment or negative equity, but some may have seen a combination of both and, as a result, simply can no longer stay in their home at its current rate. Some individuals who may have seen a reduction in their income are also facing problems because negative equity has prevented them from refinancing to a more affordable rate, and possible lower monthly mortgage payments, so this has also led to issues in terms of a homeowner’s ability to meet their mortgage obligation.
When these financial troubles are present in the life of a homeowner, a short sale on a mortgage or a deed in lieu of foreclosure plan can be beneficial when it comes to helping homeowners find an escape from their particular home loan situation, relocate to a more affordable living arrangement, and begin the process of reestablishing their finances and finding a firmer financial ground. Yet, when it comes to relocating, moving costs, security deposits on apartments or a rental home, and other expenses may simply be beyond a homeowners means to meet, which can obviously create more problems in an already difficult situation, so homeowners are being offered up to $3000 of relocation assistance funds for those who meet requirements in these programs.
Also, there have been officials who are prompting more financial institutions to offer assistance to homeowners, particularly when it comes to short sales, as foreclosure can simply leave homes sitting empty for months at a time, which is causing further damage in the housing market. In these cases, homeowners may be able to work alongside their financial institution and find a buyer for their home, participate in a short sale, and the homeowner will be free and clear of any debt obligation, provided they meet short sale qualifications.
Again, homeowners may be able to participate in either a short sale or deed in lieu of foreclosure program as part of either their state’s Hardest Hit Initiative, if they are in one of the areas that received funding from this particular program, but the Making Home Affordable’s Foreclosure Alternatives Program, or HAFA, can also offer these particular solutions and relocation aid to homeowners who are in need of alternative options to foreclosure despite the fact that they are facing the inevitable loss of their home.