Homeowners that are unemployed have, obviously, been facing a difficult time making their mortgage payment. Some cases have arisen where homeowners have no income whatsoever, while other homeowners may have simply lost some of their wages due to cutbacks at their place of employment. It is for this reason that many homeowners are looking at unemployment mortgage forbearance options to help them through this difficult time.
The Obama Administration has created an unemployment forbearance plan through the Making Home Affordable Program, but this plan isn’t set to fully take effect until, according to many reports, the fall. While some lenders say they are offering unemployment forbearance plans, many wonder if they will be of any real value at all.
Typically, an unemployment forbearance on someone’s mortgage would give them a few months during which they are not responsible for making a mortgage payment. This can be beneficial for a homeowner who may have job prospects on the horizon or for someone who knows that foreclosure is inevitable, mortgage forbearance could give them a few months without the strain of making a mortgage payment and time to make other living arrangements.
However, many believe the mortgage forbearance plans that are being proposed or used are going to have little effect until the job market opens up fully again and anyone who is looking for a job is going to be will be able to find one, homeowners are still being advised to contact their lender and discuss options for dealing with unemployment and the inability to pay their mortgage.
Some lenders will offer forbearance programs if a job is likely in the near future, while others may forgive mortgage payments as long as it is clear the homeowner intends to surrender their home at the conclusion of the forbearance period. Again, homeowners are going to get their best assistance by contacting their personal lender to discuss what mortgage aid may be available.