After exhausting all foreclosure prevention methods, you may find yourself worried about where you will live after the home is repossessed. Homeowners with limited resources may find obtaining the funds necessary to pay rent, deposits and moving costs. Fortunately, relocation assistance is available through the government and private organizations to help homeowners get back on their feet.
Home Affordable Foreclosure Alternatives Program
The Home Affordable Foreclosure Alternatives Program gives up to $3,000 towards relocating. Homeowners who complete a short sale or deed in lieu of foreclosure are eligible for assistance. To qualify for the program, you must be approved for the Home Affordable Modification Program but unable to afford the modified mortgage payment. Homeowners who miss a payment or do not finish out the trial modification period also are eligible. The home must be your primary residence, with a mortgage exceeding 31 percent of your income. Your lender must approve your request to sell the home or give up ownership rights.
The Salvation Army is an evangelical Christian church charity helping people across the globe. In addition to providing emergency financial assistance, the Salvation Army also helps unemployed homeowners find jobs to ensure stability. Financial assistance from the Salvation Army can be used toward the first month's rent, utility deposits or a security deposit. Your local Salvation Army may have specific eligibility criteria to receive assistance. You may need to meet with a case worker to provide personal and financial information such as proof of residency, income and Social Security numbers for household members. You will need to supply proof of bills and a copy of your lease agreement. The organization also provides shelter and meals for the homeless.
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The United Way is a national nonprofit organization that helps homeowners in need of a variety of services. Homeowners can receive food, clothing, shelter and emergency grants to cover household expenses. If you need help with rent or utility deposits, United Way can assist you with a one-time payment or grant. In 46 states, homeowners can dial 2-1-1 to reach a local branch for resources and aid. United Way also is able to make referrals for assistance from other organizations or churches.
Some states implement relocation assistance programs to help families after a foreclosure. In California, Keep Your Home California provides up to $5,000 per household through the Transition Assistance Program. The Federal Housing Association also backs the Keys for Cash program to reward San Diego homeowners who leave the home in good condition. The Minnesota Home Ownership Center partners with the St. Paul Foundation to offer St. Paul residents up to $2,500 towards relocation expenses. To locate a program near you, contact your state housing agency.