Deed in Lieu of Foreclosure - Mortgage Crisis Not Over
by Mary A. W. in Quincy, Florida
Ask Kate what happens after a recent deed in lieu of foreclosure: The mortgage crisis is definitely not over in many parts of our country. Florida is still suffering. Mary and her husband, out of work and in need of medical attention, have deeded their home back to the bank to avoid mortgage foreclosure. But with no heat in their temporary living quarters, they are desperately looking for the next step.
Mary asks Kate for Direction After Recent Deed-in-Lieu
My husband and I just signed the final papers on the deed-in-lieu. I am working but I don't know for how long and my husband is in the same situation.
We both will have surgery soon and our jobs are in jeopardy. The only source of income left will be his social security.
Our living situation is temporary and we have no heat. We need to move soon and we are in dire need of relocation assistance.
What should we do first? Confused and tired.
Kate Answers: Deed in Lieu of Foreclosure - Mortgage Crisis Not Over
I just sat and looked at your letter last night. That's as far as I could get.
The situation is heart-breaking.
But today I am going to see if I can offer you some direction.
HAFA Relocation Assistance
Firstly, are you expecting the $3000 relocation money from the deed in lieu process? Although it normally can take up to a couple of weeks, call the lender and stay on them. Describe your situation and ask them if they have the authority to step up the process.
Because no one likes admitting they don't have authority, asking this question can spur employees into going to bat for you, who otherwise may be more complacent.
While you have them on the phone, confirm that they have a reliable address for you on record.
For anyone reading this who is not familiar with the relocation assistance, Making Home Affordable's foreclosure alternatives, also known as HAFA, provide $3000 to homeowners who, instead of foreclosure, opt for a short sale or deed-in-lieu.
A short sale occurs when a house is sold for less than the mortgaged amount. A deed-in-lieu of foreclosure is a voluntary act of the homeowner deeding back the title of their property to the bank. There is an approval process for both.
Read more at Deed-in-Lieu of Foreclosure - HAFA Assistance
HUD-approved Housing Counselors
Next, please call the HOPE hotline to speak with one of the HUD-approved housing counselors. The toll-free phone number is 888-995-HOPE (4673).
There is no charge for speaking with them. They provide advice on buying or renting a home, foreclosures, modifications, and credit problems. They are also an excellent source of local help.
Read more about Free Making Home Affordable Housing Counselors
MyFlorida.com for State Assistance
Additionally, go to the government website for the state of Florida (myflorida.com). Scroll down and click on the public assistance link, then "Apply for Benefits". If it's simpler, call Florida's Customer Call Center at 1-866-762-2237 and ask for help.
I wish I could offer more direction. Hopefully, other readers will leave a comment if they know of other available help.
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