Unemployed homeowners are in a very difficult mortgage situation as many are reliant upon the meager income that is given from unemployment benefits. While there are many unemployed men and women who are very grateful to have this income from unemployment benefits, the amount that many homeowners make is not enough to pay all of their financial obligations. As a result, many homeowners are facing foreclosure on their home and, because of this problem, the Making Home Affordable Program has proposed an unemployment assistance plan for homeowners.
Under this unemployment assistance program, named the Home Affordable Unemployment Program, homeowners may qualify for one of two mortgage assistance plans. One plan, which many feel will greatly help unemployed homeowners, is a forbearance on mortgage payments. Homeowners who qualify may be able to forgo monthly mortgage payments for a set period of time, which may help in a variety of ways. Homeowners that have employment opportunities on the horizon, simply need a little time to get caught up in their finances, or who may be planning to give up their home may benefit from having a few months where they are not obligated to make their mortgage payment.
However, some homeowners may be able to have their monthly mortgage payment dropped to around 30% of their monthly income. While the monthly mortgage payment amount would be dependent upon the homeowner’s situation, homeowners who are denied a traditional modification may be able to use this unemployment assistance program to get a lower monthly mortgage payment as well.
While not all homeowners will qualify for this unemployment assistance, it’s hoped that foreclosures that are related to unemployment will drop in the coming months as the nation’s top mortgage lenders can now offer this assistance to unemployed individuals. Homeowners who are in need of this program have been advised to contact their mortgage lender and talk over options for their personal situation or consult the Making Home Affordable website.
Yet, there are some who believe that this forbearance program may simply delay the inevitable if the job market does not start adding more workers. However, many unemployed homeowners have been asking for forbearance options or a lower monthly mortgage payment so that they can keep a roof over their head and this extension plan of the Obama modification program is hoped to be the answer to these calls for help.