Homeowners who are unemployed and have been struggling to make their mortgage payment may be able to benefit from the Home Affordable Unemployment Program, which is set to begin by August 1. Homeowners who are able to take advantage of this program can be given a forbearance period in which they can temporarily reduce or suspend their monthly mortgage payments.
This program is one of the many foreclosure prevention efforts from the Making Home Affordable Program which are hoped to help homeowners who are having various mortgage difficulties avoid losing their home. Like other plans within the Making Home Affordable Program homeowners will obviously have to qualify before they can benefit from the Home Affordable Unemployment Program.
It goes without saying Homeowners will have to meet certain criteria before they can use this mortgage assistance program, so it is possible that not every unemployed homeowner will be able to benefit from this plan. Homeowners can only have a first lien mortgage, must have been ineligible for the home affordable modification program, and a homeowner will be unemployed at the beginning of the forbearance period, which should coincide with their receipt of unemployment benefits.
A homeowner’s monthly mortgage payment will also be no more than 31% of their gross monthly income under this program, which should help many who will be dependent upon unemployment benefits to meet their basic financial needs. However, some of these qualifications and criteria will be dependent upon a mortgage lenders requirements as well, as some banks may require that a homeowner already be receiving unemployment benefits before a forbearance period starts.
While the program has not taken place as of yet, it is hoped that this forbearance period will allow homeowners the time they need to find another job without having to be under the strain of a mortgage payment. There have been problems with other modification programs and mortgage assistance plans, but there have been homeowners who have benefited from the Making Home Affordable Program assistance plans and it is hoped that the Home Affordable Unemployment Program will be able to keep some homeowners in their home despite being unemployed.