As landlord, I have been pre-qualified for a short sale under HAFA. As the landlord, I can also request $3,000 relocation assistance for the tenant under the program. Tenant is on month to month and willing to move at (or around) closing time. Can I have a written agreement with the tenant that if the $3,000 is approved and paid out, that this will be in lieu of any refund of security deposit?
Loan is current, but tenant deposits have been exhausted maintaining the property. If deposits have to be refunded, the mortgage payments will have to go in to default to recoup the deposit amounts. If in default, most likely will no longer qualify for this program. The refundable deposit is about 1/2 the $3,000.