Unemployment has been a major problem across our nation and as more jobs are being lost in many areas from month to month, homeowners are worried about meeting their financial obligations, more specifically their mortgage. A home loan payment is often the most expensive form of debt an individual has but it is also one of the most necessary. Homeowners, specifically those who simply want to keep a roof over their head, have been seeking ways in which they can make their home loan payment more affordable as many deal with unemployment or underemployment issues that have left them with little or no income.
However, the Home Affordable Unemployment Program has been created in order to provide unemployed homeowners the mortgage assistance they need if they were, for instance, rejected from a home loan modification plan. Homeowners who qualify for the Unemployment Program may be able to obtain a more affordable home loan payment or be granted forbearance on their home loan. Homeowners who can forgo a home loan payment for a few months may benefit greatly as many individuals are simply asking for extra time in order to get their financial life in order or explore alternatives for their living arrangements.
While many unemployed homeowners are simply living off of unemployment benefits, this income is not enough to allow those who are unemployed across the nation to meet the majority of their expenses, not to mention a mortgage payment. The Unemployment Program from the Making Home Affordable Program is hoped to allow homeowners to find a more affordable way of keeping their home and avoid foreclosures, but there are those who believe that this program has either been implemented too late or will be delaying the inevitable.
Some homeowners have been asking for forbearance programs or a reduction in the cost they pay from month to month on their home loan, but there have been many who have not been able to find this type of assistance. Many believe that allowing homeowners to avoid paying on their home loan when unemployment is a problem will only push back the loss of their home for a few months.
This can be the case for some, but forbearance programs or a reduction in a homeowner’s mortgage obligation can be helpful and has allowed many to keep their home through similar programs, like the home loan modification plan. However, unless more jobs are created and homeowners are given the opportunity to return to work, there may be more foreclosures ahead despite efforts from plans like the Home Affordable Unemployment Program.