Unemployed homeowners may soon be able to obtain mortgage assistance which could help them stay in their home or get a more affordable home loan payment. Unemployed homeowners who do not qualify for the Making Home Affordable modification program may be able to take advantage of the upcoming Home Affordable Unemployment Program, which is set to begin August 1.
The Home Affordable Unemployment Program is essentially a forbearance program for homeowners who are unemployed and unable to meet their current monthly mortgage payment. These homeowners may benefit from a forbearance in their mortgage payments simply because some individuals who are newly unemployed are required to live off of the small income that is gained from unemployment benefits.
This program to help unemployed homeowners may either drop a homeowner’s required monthly mortgage payment to no more than 31% of their gross income or they may have their payments suspended altogether. This can help many homeowners who are falling behind on their mortgage payments or in a case where it is obvious that a homeowner will soon be unable to meet their monthly mortgage payment.
A forbearance solution similar to this has been proposed but many lenders have been unable to implement such a program until the current time, seeing as how mortgage forbearance programs were not something that lenders widely wanted to use necessarily. There are a variety of mortgage assistance options from the Making Home Affordable Program, as well as from in-house mortgage assistance plans from lenders themselves, but homeowners who are unemployed were sometimes unable to meet their mortgage payments even after assistance was offered due to their unemployment situation.
There have been concerns over homeowners defaulting even after being offered modification and there have been many instances where this has happened when a homeowner who was unemployed simply could not make the modification payments on their home loan. Yet, for unemployed homeowners, it’s hoped that programs like the Second Lien Modification Program and the Home Affordable Unemployment Program will make home loan payments more affordable for the unemployed men and women in our nation while they continue to search for employment.