Many unemployed homeowners had hoped to receive mortgage assistance on their home loan through unemployed mortgage aid options like the Home Affordable Unemployment Program. While many homeowners continue to call for a tier 5 unemployment benefits extension, which many claim will help prevent more homeowners from losing their home at the present time, individuals who were previously looking into these mortgage assistance plans for jobless homeowners may have hit a problem.
It’s been reported that homeowners who are unemployed cannot claim jobless benefits as income when they are seeking these mortgage modifications. While these new rules are said to only be applicable to home loans that are backed by Fannie Mae, many worry that this could cause massive problems for unemployed homeowners who are seeking a reduction in their mortgage payment.
While it is believed that homeowners may still be considered for forbearance plans if they have no income outside of their unemployment benefits, there are homeowners who feel that these mortgage assistance plans would work more efficiently if a tier 5 benefits extension was passed and homeowners could claim their unemployment as income. Previously, homeowners were allowed to use their unemployment benefits as income, but since this form of income is temporary, there were concerns that mortgage assistance given to homeowners who were claiming unemployment benefits as their only income were not sustainable for the long term.
Unemployment continues to be one of, if not the, driving factor behind many delinquencies and defaults on home loans, but it’s hoped that as the job market improves homeowners may be able to benefit from simple forbearance options. While there are sure to be more foreclosures in the near future due to unemployment, homeowners who are jobless may only have forbearance options at the present time if their primary income comes only from their unemployment benefits insurance.