Unemployed Home Loan Mortgage Assistance Programs–Can Unemployed Homeowners Find Help

Unemployment remains a problem for many homeowners across the nation and, as many wait and hope for a Tier 5 unemployment extension, homeowners are either living off of unemployment benefits at the current time, wages from a part-time position or reduced hours from their place of employment, or some have simply seen their income disappear. While many homeowners are using a variety of methods to provide themselves the means to make their home loan payment, there are unemployment home loan mortgage assistance options that may be available.

While various mortgage servicers may offer in-house unemployment assistance plans for certain homeowners, the Home Affordable Unemployment Program has been set in place to help those unemployed homeowners who may need a reduction in their home loan amounts so that they may avoid foreclosure. Some homeowners have sought assistance through the home loan modification program from the Obama Administration, but in cases where a homeowner is denied this form of assistance the Unemployment Program may help.

Proposals for this Home Affordable Unemployment Program are prompting lenders to either lower a homeowner’s monthly mortgage payment to no more than 31% of their income for each month or offer forbearance options for at least three months. Obviously, homeowners who can have their monthly mortgage payment reduced will benefit since the majority of homeowners are simply asking for a lower monthly payment.

Yet, the forbearance option that may be used by certain lenders can also benefit a homeowner who may be in excessive financial distress, have a job opportunity on the horizon but is currently unable to meet their monthly mortgage payment costs, or those who simply need a little time to get their finances in order so that they may begin repaying on their home.

Homeowners who are unemployed can talk directly with their mortgage servicer or consult the Making Home Affordable website and Hotline in order to begin a modification assistance program. While not all homeowners may qualify for help, there are a variety of mortgage aid options that are now available to assist homeowners in almost every situation.