Some unemployed homeowners may qualify for a forbearance program that has been set in place as an extension of the Making Home Affordable Program. The Home Affordable Unemployment Program may qualify certain unemployed homeowners for either a reduction in their home loan payment or may qualify them for forbearance on their monthly mortgage obligation for a set period of time.
Unemployed individuals have returned to home loan modifications as a way to lower their monthly mortgage costs during times of economic and financial strain. However, some have been unable to qualify for these modifications, and new rules that prevent unemployed homeowners from claiming unemployment benefits as income have also complicated matters in some cases.
Yet, these forbearance programs can help homeowners for a set period of months by allowing them to forgo their monthly mortgage payment if a lower monthly mortgage payment is not available. While there are some who feel these forbearance programs are simply delaying the inevitable, servicers hope that by allowing homeowners to avoid the loss of their home through these forbearance initiatives, they may have the opportunity to find employment which will allow them to return to a financial position where their mortgage payment is affordable.
Forbearance options are typically sought out through a homeowner’s mortgage servicer, but there are some troubles that can arise between homeowners and financial institutions. Difficulties remain in these foreclosure prevention initiatives, but it’s believed that with servicers both working with homeowners to provide affordable mortgage payments and forbearance options, more unemployed homeowners may be able to avoid the loss of their home.