Unemployment has caused a great deal of trouble for both homeowners and the housing market but a new modification program may help homeowners who are unemployed and struggling to meet their monthly mortgage payment. The Home Affordable Unemployment Program has been proposed as an extension of the Making Home Affordable Program and, for homeowners who may not qualify for a traditional modification, mortgage assistance may be available.
Homeowners who are unemployed typically have either seen a reduction in their income from unemployment, the entire loss of income from a spouse, or some homeowners are simply living off of unemployment benefits, which are not enough for the average American to meet all of their required monthly costs. While some homeowners may have benefited from a permanent home loan modification, there are unemployed individuals who do not qualify for a modification but face the loss of their home without mortgage assistance.
For this reason, the Home Affordable Unemployment Program may offer homeowners a reduction in their monthly mortgage payment to no more than 31% of their monthly income, which is similar to a home loan modification. However, the way that the Unemployment Program differs is that homeowners may also qualify for forbearance on their monthly mortgage payment if they meet certain requirements. Obviously, the job market is very weak at the present time but some homeowners who are able to obtain a forbearance on their home loan may be able to avoid foreclosure if, for a few months, they can forgo their mortgage payment until a new job opportunity presents itself.
Homeowners who are unemployed and struggling can talk with their mortgage servicer about options for forbearance programs or other assistance available through the Home Affordable Unemployment Program. While there have been troubles between lenders and homeowners, there are also outside sources that can be consulted like the Making Home Affordable website or hotline which may provide more information and guidance for homeowners seeking various forms of mortgage assistance. While not all homeowners may qualify for this Unemployment Program, unemployed homeowners may benefit from a forbearance or reduction in their monthly mortgage payment until the time when more job opportunities become available and homeowners can resume their regular monthly mortgage payment plan.