The Obama Administration recently set forth additions to the home loan modification program to help homeowners that are struggling with their mortgage due to unemployment or underemployment. Homeowners that are unemployed may be able to get forbearance from their mortgage payments for three to six months, and this program is hoped to help many homeowners that want to pay their mortgage, but simply can’t.
Banks like Citigroup have helped homeowners in the Making Home Affordable home loan modification program but homeowners that are suffering from unemployment have circumstances that may not be aided by a traditional mortgage modification.
Until solutions for unemployment are created and jobs begin to open again at a rate that will meet the number of unemployed men and women, there is little that homeowners can do outside of losing their home. Since foreclosures are costly to lenders and homeowners, it is hoped that a forbearance program will help homeowners get back on their feet without losing their home.
Citigroup has had similar programs in place in the past and they have stated there are numerous avenues for a troubled homeowner to take not just with the Making Home Affordable Program, but also with Citigroup as well.