Unemployment has become a major problem in our nation and has begun affecting the housing market, which many believe is one factor that is keeping our nation’s economy from growing. However, the Obama Administration has announced additional support for homeowners who are unemployed and may face foreclosure as a result. There are unemployment mortgage assistance programs that are available to certain homeowners, but new extended foreclosure prevention plans are hoped to do more to aid homeowners who are either involuntarily unemployed, underemployed or suffering from a medical condition.
While the Home Affordable Unemployment Program has been one means which unemployed homeowners have been able to gain mortgage assistance, there are additional programs that may go further to help unemployed homeowners that may not qualify for this Unemployment Program. Homeowners who do qualify for the Home Affordable Unemployment Program may have their monthly mortgage payment reduced to no more than 31% of their monthly income or they may be given forbearance on their home loan payments for a set period of time.
Yet, some of the hardest hit areas in our nation have needed additional support so, the Housing Finance Agency created the Hardest Hit Fund, which is offering additional assistance for homeowners who are struggling to make their mortgage payment due to unemployment. Also, the Department of Housing and Urban Development is set to be launching an emergency home loan program that will provide assistance to homeowners for up to 24 months when they are at risk of foreclosure.
Certain states have been suffering particularly due to unemployment and these assistance initiatives are hoped to give states who are experiencing an unemployment rate over the national average funding with which they may use to assist homeowners who have been unemployed or have seen a massive reduction in their income. These programs may provide temporary assistance to homeowners who qualify by aiding them with the payment of their mortgage while they either seek reemployment or undergo job-training.
While unemployed men and women continue to hope that a Tier 5 benefits extension will be passed in the coming weeks, these new unemployment assistance programs for homeowners may be beneficial in keeping individuals in their home while they either find employment or can get their finances back in order so that, with what meager income they may have, they can continue to make their home loan payments or find a long-term mortgage assistance solution.