Home loan modification assistance for unemployed homeowners may be available through various programs, most notably the Home Affordable Unemployment Program from the Obama Administration. Homeowners who are struggling with unemployment are, obviously, in great need of mortgage assistance as many have seen their income plummet or vanish altogether.
Unemployment mortgage assistance plans like the Home Affordable Unemployment Program may offer either a reduction in the payment plans for a homeowner or a forbearance in their payments altogether. Obviously, many homeowners have sought out a home loan modification in order to help them meet their monthly mortgage obligation, but many have been denied this form of assistance.
However, an alternative has been presented in the form of this Unemployment Program which may bring similar benefits through reductions in mortgage payments, which may be lowered to around 30% of the homeowner’s income. Since many homeowners are living off of a reduced income or unemployment benefits, a smaller mortgage payment can be lifesaving when it comes to a homeowner who faces foreclosure.
Also, there may be options for homeowners to receive forbearance on their mortgage payments if they qualify. Homeowners who may qualify for this type of mortgage aid might be able to forgo their mortgage payments for at least three months or more, depending upon the discretion of their mortgage servicer.
Unemployed homeowners may feel that they have no options, but there are servicers that may offer in-house assistance plans or will work with a homeowner through the Home Affordable Unemployment Program to aid those who have lost their job and are struggling to hang on to their home. Many of the unemployed feel that job prospects are on the horizon so if they can only keep their home loan payments affordable they will eventually regain their firm financial foundation, which will allow them to begin making their mortgage payments when times have improved.