Some unemployed homeowners may be able to obtain forbearance on their monthly mortgage payment through a new program that has been offered from the Obama Administration’s Making Home Affordable Program. Unemployment has been one of the main causes of trouble in the housing market and for homeowners but various options have been made available to help unemployed homeowners avoid foreclosure.
The Home Affordable Unemployment Program was launched in order to help homeowners who may have been denied a home loan modification but are still in need of a reduced monthly mortgage payment or further mortgage assistance. Homeowners who qualify for this program may be able to lower their monthly mortgage obligation to around 31% of their monthly income.
Some homeowners have seen a drastic reduction in their income due to underemployment or are living off of unemployment benefits if they are jobless. While the meager income from unemployment benefits is something that can’t meet the entirety of many homeowners’s financial obligations, this forbearance plan is seen to be one way in which homeowners who are unemployed may be able to avoid foreclosure if they are in a dire financial position.
Critics of the program believe that it will either delay the inevitable or has come too late since unemployment has become such a widespread problem that even forbearance on monthly mortgage payments or a reduction in home loan payments will be unhelpful for some. Yet, various mortgage servicers, along with the Obama Administration, have proposed this unemployment home loan payment forbearance plan, as well as various extension plans to help homeowners in other troubling situations, so that homeowners can at least have a fighting chance to keep their home.
Homeowners have been advised to speak with their primary mortgage servicer or consult the Making Home Affordable website or hotline for more information and assistance regarding unemployment home loan plans. While not every homeowner may be able to save their home, those unemployed homeowners who may simply need a little extra assistance in making their mortgage payment may find it through this Unemployment Forbearance Program.