Tier 5 Unemployment Benefits Extension Requested By Long-Term Unemployed But Will They Prevent Foreclosure?

Unemployment benefits have helped keep many of the long-term unemployed men and women afloat over the past months. However, those who have been out of work for 99 weeks or more have asked for a tier 5 unemployment benefits extension to be passed, but this measure has gained little support as the issue is highly volatile and debated.

Some homeowners have argued that by passing an additional tier of unemployment benefits they may be able to take advantage of foreclosure prevention efforts like the Home Affordable Unemployment Program. Yet, it was recently announced that this argument may no longer hold any water as unemployment benefits may no longer be claimed for certain foreclosure prevention programs.

Previously, homeowners who were receiving unemployment benefits were able to claim their unemployment insurance as income, but recently rules have been changed to stop homeowners from claiming benefits from unemployment as income since they are temporary. While, again, tier 5 unemployment benefits extensions were thought to have possibly been a way long-term homeowners may have been able to take advantage of unemployed homeowner assistance plans, this may no longer be the case.

There are some indications, though, that homeowners who may not have income outside of unemployment benefits may still find assistance through mortgage forbearance plans, despite the fact that many see these plans as a temporary solution. Some analysts feel that homeowners who are unemployed and reliant upon forbearance options or unemployed homeowner assistance plans are only delaying inevitable foreclosure. Yet, as reports indicate private employers are adding more jobs, unemployed homeowners are arguing that a few additional weeks of mortgage assistance could put them in a position to where they may find stable employment and can resume making their mortgage payments.