Mortgage assistance for unemployed homeowners is available through certain programs like the Obama Administration’s Home Affordable Unemployment Program. For instance, this plan can offer homeowners who are unemployed a reduction in their mortgage payment or forbearance on their home loan obligation.
Yet, unemployment remains a major problem in our nation and homeowners are suffering as a result. A lack of income, a reduction in one’s income, or the total loss of income have all caused strains to the housing market and for homeowners in some form or fashion. However, these mortgage assistance plans that have been available were hoped to make home loan payments more affordable for those who are struggling financially.
There are, however, concerns by many analysts who say that unless the problem of unemployment begins to quickly see solutions and hiring increases, unemployment mortgage assistance plans will only delay the inevitable. While there can be home loan modifications tailored to help those who are living off of unemployment benefits as their only income, and forbearance plans may also be beneficial, these solutions, according to many, are not a long-term fix.
While there have been homeowners who have been granted a permanent modification on their home loan and there are unemployed homeowners who may benefit from the Home Affordable Unemployment Program, income from unemployment benefits or an underemployment situation typically will not last long enough to assist the homeowner in affording their home. A reduced mortgage payment may be helpful at the present time but interest rates and costs can add up so that a homeowner will eventually pay an outrageous amount on their mortgage.
Some homeowners have simply given up their home while others continue to fight, but there remains concern over these unemployment assistance plans for homeowners. There is a call for more to be done for job creation so that homeowners will no longer need mortgage assistance and can return to a state where their income allows them to meet their mortgage obligations.