Many mortgage servicers are either considering or being advised to consider renting foreclosed homes as there are indications that men and women who have either faced foreclosure or who may be unwilling to enter the housing market at the present time could potentially fill these empty properties, which in some cases may be causing a drain within the local housing markets in some areas. Understandably though, some homeowners would have to be offered a rental rate that would be lower than what a potential bank could receive from a mortgage, but in cases where new homebuyers may be scarce, this is one proposed way that both foreclosed homeowners and banks may be able to take advantage of the inventory of homes in the market.
Yet, homeowners who are facing the loss of their homes often turn to renting an apartment or a smaller home but are also in a position where they may be able to get relocation assistance if they meet certain qualifications. Some homeowners who participate in a short sale or a deed in lieu of foreclosure programs are obviously not in the most optimal of situation since they have lost their property but also may have suffered financial strains that will not allow them to either affordably meet the costs that come with moving or renting an apartment.
These relocation assistance programs may be available from both federal and state initiatives, in some cases, and have been able to provide some homeowners with a great deal of financial assistance when it comes to meeting costs that may arise like security deposits, moving costs, or simply paying their rent for a short period of time. Obviously, homeowners who qualify for these relocation assistance funds will not necessarily be able to meet a great deal of the costs that arise when moving, but some homeowners have been able to get the assistance needed to find a new living arrangement and meet the costs that come with vacating their home and entering into their new place of residence.
When some homeowners have lost their home due to unforeseen financial circumstances, like unemployment or illness, there are landlords who may be more willing to work with these men and women if they have not faced the loss of their home as a result of financial negligence or simply spending beyond their means. Yet, what could go further to potentially help homeowners is renting these foreclosed properties that are empty, as there are servicers complaining that it could take a long time before they begin to see any dent made in the overall housing inventory currently in place.
Ideally, homeowners who participate in a short sale may be able to get this relocation assistance, and if rental programs are implemented by banks that are currently holding foreclosed properties, it may not bring in as much as a mortgage, but it would at least be some form of income that servicers would have found these properties and could obviously make the transition process for displaced homeowners a little easier, particularly if they have worked with their servicer to sell their home or surrender their deed when their financial situation led to an inability to pay their mortgage.