Foreclosure Relocation Assistance

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Foreclosure Relocation Assistance

Relocating after a foreclosure often means a lot of expenses. This condition often forces people to leave their job for a few days to deal with moving all the stuffs. There are also other expenses such as transportation and gasoline, not to mention if you have to hire somebody to help you do the job.

To make things worse, foreclosure can really negatively affect your credit history. It is common that people who have been relocated due to foreclosure face troublesome matters when they are trying to rent a place in the future. Many rental managers will ask for a higher security deposit to cope with the risk. Unfortunately, most of these people cannot afford such high-security deposit.

In this post, you will learn about several options for foreclosure relocation assistance available from the state and federal programs, along with other possible options, even from your lenders.

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Foreclosure Financial Relocation Assistance Options

State Program

Some states have a specific program aimed to help struggling homeowners. Even though these programs’ funding source is the same (from the Federal government’s Hardest Hit Fund), the programs’ name may differ in each of the states. For example, in California there’s the Keep Your Home California program that provide some form of relocation assistance for eligible people. The money provided varies greatly depending on each case, but the maximum grant amount is $5,000. As we’ve said earlier, there may be some differences in every state regarding the program, so we recommend contacting your state’s Department of Housing and Urban Development for more information. Alternatively you can contact your local HUD-approved counseling agencies.

Rental Initiative

Some home loan lenders offer the rental initiative, which is a program that can help providing additional time for you and your family before you can find a new place after a foreclosure. Typically the family is still allowed to live in the property for a while in exchange of paying the rent. Usually there are some requirements, including background check, a stable monthly income, etc. One company that uses such scheme is the Freddie Mac.

Cash for Keys

Cash for Keys is not your typical relocation assistance. This one is typically provided by your… lenders. Although it may be surprising for some, the Cash for Keys program is supposed to remove the risk of former homeowners to damage the property. The lender will give the former homeowner some amount of money (which amount depends on the negotiation, really), and in exchange the former homeowners will not trash the property before they left. Ask your lender if they provide such option, and if they do, make sure to have a written agreement between you and the lenders to make sure that they will fulfill their promise.

Community Resources

Last but not least, you can search for help from your local community organizations or foundations. These community resources aim to prevent the increasing number of homeless in the US by providing various help, including grant money, transportation help, or other foreclosure financial relocation assistance options.

We hope this post can help!

References:

  • Help With Relocating After Foreclosure
  • Relocation, Foreclosure and Eviction
  • Image: salcineslaw.com