Homeowners who are suffering from unemployment may have more home loan options that can make their mortgage payment more affordable while they continue to look for work or struggle with the loss of wages from their place of employment. Unemployment has been one of the major problems that homeowners have faced when dealing with their monthly mortgage obligation. Home loan modifications have been made available to many homeowners but in some cases, modifications are unavailable or unhelpful so alternative unemployment home loan assistance has been proposed.
Options like the Home Affordable Unemployment Program have offered to lower monthly mortgage payments for unemployed homeowners or offer forbearance on their mortgage payments. Homeowners who qualify for a reduction in their monthly mortgage payments will be able to have their home loan obligation lowered to no more than 31% of their gross monthly income. Homeowners who are given forbearance may be allowed up to three months where they are exempt from making their home loan payments.
Also, the Department of Housing and Urban Development has proposed an unemployment mortgage assistance plan to help homeowners who are in states that have been hard-hit by unemployment. While this program can offer assistance to homeowners who are unemployed, homeowners who qualify for this HUD assistance plan will have to demonstrate that they had an excellent payment record prior to their job loss, which is currently causing them difficulty in making mortgage payments.
While unemployment remains a source of trouble for many homeowners, there may be options in the form of these unemployment mortgage assistance plans to those who were able to pay their home loan payment before circumstances outside of their control caused their job loss and thereby their inability to pay their monthly mortgage payment. While not all homeowners may qualify for this unemployment assistance, resources like the Department of Housing and Urban Development website and the Making Home Affordable Website are available to homeowners who are in need of unemployment mortgage assistance.