After a dismal jobs report which was released last week and an increase in the unemployment rate, there are clearly still aspects of economic recovery that have either begun to slow or are not improving as well as had once been thought, and this is sure to lead to more financial distress in the housing sector as more homeowners fall behind on their mortgage payments. Ideally, homeowners will be able to take advantage of modification efforts or state-specific programs to help meet home loan payment costs for unemployed homeowners or those who are suffering from other forms of financial distress, but sadly there are those who do eventually come to a point where either foreclosure or a foreclosure alternative must be used.
However, when it comes to relocating to a new living arrangement, there are more homeowners who are looking to apartments as a way to transition from their home to a stable financial life which can be then used to purchase another home down the road, if this is the goal. Yet, what many areas of the nation are seeing is an increase in the prices they are paying for rent, and for a homeowner who has recently lost their property this can be difficult, particularly when their savings may have been depleted while trying to stay afloat on their home loan.
The good news for those who successfully complete programs like the Home Affordable Foreclosure Alternatives initiative is that there are relocation assistance plans that some homeowners may still be unaware of or have overlooked. While this particular type of assistance is not new, homeowners who are now falling into a situation where a short sale or deed in lieu of foreclosure program may be necessary should be aware that there are some options that will help them in terms of meeting relocation costs, as it was previously reported last month that some banks are offering a substantial sum to homeowners when transitioning to a new living arrangement after they have completed a short sell on their home.
These funds can be used for simple moving costs, down payments at an apartment complex, or in some cases it may help consumers meet rent payments, but of course this will depend on the amount of relocation assistance funds that a homeowner receives. Homeowners need to remember that this help is available and may want to question their servicer about what options for assistance will be available if they participate in a foreclosure alternatives program, as those who are facing problems like unemployment or severe financial setbacks may simply be in a position where the costs of moving could be to high and these funds from relocation assistance plans may be of great help.