Some homeowners may have help when it comes to finding a solution to their housing troubles after a foreclosure has taken place or homeowners have found themselves in a situation where they can no longer afford their home at its current rate. Understandably, mortgage payments for many homeowners have become too difficult to meet but there is also a problem that some banks have faced when it comes to being able to fill foreclosed properties after homeowners have gone. It’s because of this that some proposals, and even some mortgage servicers, have suggested that rental properties be made out of these foreclosed homes or programs that may allow homeowners to surrender the deed of their home could potentially allow for rental agreements to be drawn up for homeowners as well.
We have seen that there are homeowners who are using options like short sales to get out of a difficult situation where negative equity may be in place on their home, or in cases where a homeowner simply cannot afford their mortgage payment, deed in lieu of foreclosure plans have also been sought out by some. What this means is that homeowners who are still having trouble making their mortgage payment do have options to transition from their home to another living arrangement, and there are even relocation incentives that may be available to help homeowners in these situations.
Yet, homeowners may also find that, for some mortgage servicers, it is not optimal to allow every homeowner to relocate as there are simply not enough new homebuyers to fill empty properties currently on the market, and as a way to help homeowners who are suffering from financial setbacks, some of these foreclosures or homes where a deed has been surrendered could be turned into rental properties that may allow homeowners to either remain in their home for a set time, while only paying rent, or allowing them a longer period of time during which they can transition out of the home.
Obviously, homeowners are not always going to find a servicer who will allow one of these rental programs after a foreclosure or when financial distress may be in place, but there are some who feel that this may stabilize the housing market in a way that will be beneficial so that home prices will see less reductions and homeowners, in general, may be able to avoid transitioning from their home until a time where they may have more financial stability as well. Yet, homeowners do still have opportunities for relocation assistance if they participate in certain foreclosure alternatives programs, and this may help with either renting an apartment or moving into a new rental property, as there are some banks that are working with homeowners to find short sale buyers, help homeowners to relocate, and are filling these properties so that they will not simply be added to the inventory already in place.