Unemployed homeowners who are struggling in their mortgage may find help from the upcoming Home Affordable Unemployment Program. This program is set to offer forbearance options for homeowners who are unemployed and have been struggling to meet their current monthly mortgage payment.
Traditional home loan modifications, which have been on the rise from month-to-month, have helped many homeowners who are in need of a reduced monthly mortgage payment, but when homeowners are simply surviving off of unemployment benefits there has been a greater need for mortgage assistance than a traditional modification may not be able to meet.
Unemployed homeowners may be able to get forbearance on their monthly mortgage payments or have these payments reduced to no more than 31% of their monthly income. This, obviously, can be beneficial for homeowners who have lost their job and will have to survive on the meager payments that many are receiving from their unemployment benefits. While these unemployment benefits have been a lifesaver for many people, it’s obvious that they cannot meet the financial needs of many unemployed men and women, so this unemployed homeowners mortgage assistance program is hoped to tailor mortgage aid options for the unemployed.
The program is set to start by August 1 and mortgage lenders participating in the Making Home Affordable Program should be able to offer their homeowners who are struggling this form of assistance from the Unemployment Program. While there are some qualifications, homeowners who will be unemployed at the beginning of their forbearance period, who were ineligible for a modification, who have a first lien mortgage, and who are in a situation where it’s likely they will fall behind on their mortgage payments may be able to benefit.
Unemployed homeowners or those who may become unemployed in the near future are being advised to talk to their mortgage lenders and consult the Making Home Affordable website for more information about dealing with their mortgage situation. While this program for unemployed homeowners may have trouble, it’s hoped that more homeowners who can benefit from a forbearance rather than a modification will be able to obtain this mortgage assistance and keep a roof over their head while they seek employment.