Housing troubles and unemployment seem to go hand in hand as homeowners who have either lost their job or are underemployed are having a great deal of difficulty meeting their monthly mortgage payments. Obviously, homeowners who are unemployed and are either relying on unemployment benefits insurance as their only income or who may have only meager to no income may still benefit from unemployment mortgage assistance programs.
Home loan forbearance programs available from plans like the Home Affordable Unemployment Program may qualify certain unemployed homeowners for forbearance on their home loan. Understandably, homeowners who have lost their job but were previously able to meet their monthly mortgage obligation are quite frustrated but may be given an additional opportunity or added time to save their home.
Most homeowners have turned to modification plans both from the Making Home Affordable Program or from private modifications directly from lenders as a way to lower their home loan costs, but defaults continue to be a problem within these assistance plans. However, despite criticism, forbearance programs for unemployed homeowners may offer a way for these individuals to at least gain extra time in their job search before losing their home or alleviate a homeowner of their mortgage obligation while they seek alternative living arrangements.
Usually, homeowners seeking mortgage forbearance must talk first with their mortgage servicer to begin the forbearance application process. Despite the fact that foreclosures are still a major problem for many homeowners, servicers might be willing to offer homeowners who have suddenly come upon a difficult financial time the opportunity to enter a forbearance program while they continue to seek a more stable financial ground.