For months many of the long-term unemployed men and women in our nation have been seeking a tier 5 unemployment benefits extension. Recently, arguments were made that certain unemployment foreclosure prevention plans, which require homeowners to show that they were receiving unemployment benefits as income, were hoped to add more fuel to the argument that this additional tier of benefits should be passed.
Yet, Fannie Mae recently stated that homeowners who are unemployed could not claim unemployment benefits as income for certain programs, which disqualified many from receiving mortgage payment reduction plans, since unemployment benefits were temporary. While it has been reported that homeowners who only have income from unemployment benefits may still be considered for unemployment foreclosure prevention options through forbearance plans, it would seem that an additional tier of unemployment benefits would be unhelpful in this area.
Unemployment benefits have been a highly debated issue for months and problems have arisen in many ways, as more homeowners face the possibility of foreclosure due to the fact that they cannot find employment that allows them the means to meet their financial obligations. Many have been reliant upon unemployment benefits to simply stay afloat and argue that since the job market has shown little improvement additional benefits should be passed.
While it seems highly unlikely that a tier 5 benefits extension may pass, unemployed homeowners may still have mortgage assistance through the forbearance plans. The Home Affordable Unemployment Program can offer homeowners who are suffering from unemployment the opportunity to gain forbearance on their mortgage payments in certain cases, which can help in the short term when it comes to keeping unemployed homeowners in their home.