Homeowners looking for home loan assistance may find help in newly expanded programs from the Obama Administration, which seek to help underwater homeowners and unemployed homeowners. Those who are unemployed may benefit from a forbearance program, while underwater homeowners may be able to obtain a principal reduction.
Like the home loan modification program, these new extensions are not required of lenders, but many of the top mortgage lenders and banks are on board and looking to help unemployed and underwater homeowners.
Forbearance programs may allow unemployed homeowners to go 3 to 6 months without paying their mortgage payment or at least reduce their monthly payment significantly for that amount of time in the hopes they can find work or new options can be presented.
Underwater homeowners that are frustrated in their mortgage may get principal reduction options if they make their mortgage payments on time for a specific period, in which they would see their principal balance begin to drop.
Each lender will most likely handle these programs differently so homeowners in either situation may want to talk over options that are available from their personal mortgage lender.