New mortgage modification assistance is going to be available to homeowners that are unemployed or have an underwater mortgage. Many homeowners that are facing unemployment or the strains that come with an underwater mortgage have been struggling and asking for assistance and it appears that the Obama Administration is taking additional steps to do just that.
Those who qualify under the Home Affordable Modification Program and owe more than 115% of their home’s current value would be eligible for a reduction if they make payments for three years, at which time their balance would be forgiven. This incentive isn’t an instant principal reduction, but rather an agreement for a reduction provided the homeowner doesn’t walk away from the home.
For the unemployed homeowners, forbearance programs are going to be offered that would reduce an unemployed homeowners monthly payment to 31% or less of their monthly income for a three to six month period, or for those who qualify there would be a suspension of payment altogether.
These new ventures are criticized by some and said to be necessary for the housing market’s survival by others. So if you are a homeowner facing an underwater mortgage or unemployed, be on the lookout for these programs that could offer you the mortgage assistance you need.