Many homeowners who have been struggling to pay their mortgage have been seeking a home loan modification in order to lower their monthly mortgage obligation. However, unemployment has reached such extremes for some individuals that the Making Home Affordable Program has created an extension plan to help homeowners who have been suffering from unemployment and may have been denied a traditional home loan modification.
While home loan modifications have been on the rise for many homeowners over the past months, as mortgage servicers are being pressed to do more to help homeowners who are in need of mortgage assistance, there are situations where a traditional modification simply does not help or a homeowner may not qualify. However, in situations where a homeowner has lost their job, the unemployment plan from the Making Home Affordable Program may give homeowners the help they seek.
There are forbearance options or mortgage payment reduction plans that are offered through the Home Affordable Unemployment Program, which many lenders have stated they will begin to use as of August 1st. Unemployment remains a strain on not only homeowners but on the housing market as well as many individuals have seen either a loss of income from unemployment or drastic cutbacks in their wages due to underemployment or a reduction in hours at their job.
There have been unemployment extensions for those who are collecting benefits, but often the funds that are received from unemployment benefits are not enough for homeowners to meet the entirety of their financial demands. For this reason, it’s hoped that homeowners who are given a forbearance or have their mortgage payment requirement lowered will be able to either find firmer financial ground in the near future or will at least be able to make financial ends meet with the income they are provided at the present time.
Homeowners with questions about the Home Affordable Unemployment Program can consult with their lender as to the qualifications and requirements for this assistance plan or they can research more program information on the Making Home Affordable website for unemployment mortgage aid and other mortgage assistance options.