Unemployed homeowners have primarily turned to home loan modifications as a way to lower their mortgage payments, in the hopes of avoiding foreclosure. However, changes in certain rules may disqualify some homeowners from claiming unemployment benefits as income, which could cause difficulties for those looking for a modification.
Yet, alternative mortgage assistance plans for unemployed homeowners may be available, which could help homeowners avoid the loss of their home at the present time. Some homeowners hope that tier five unemployment benefits extension will be passed, which could help some meet their monthly expenses, but overall, more homeowners are hoping that job opportunities will soon become available and allow them some relief in their financial life.
However, unemployment mortgage forbearance plans may help unemployed homeowners at the present time, as lenders have been considering homeowners who are relying on unemployment benefits for these types of plans. Forbearance on mortgage payments for a set period of time could be greatly beneficial for some homeowners, or at least could help others make alternative living arrangements if they feel foreclosures inevitable.
The Making Home Affordable Program has various extension programs, one of which is the Home Affordable Unemployment Program. Under this plan, homeowners may be able to qualify for mortgage forbearance if they are unable to benefit from a home loan modification or may not meet the requirements for modification assistance.
There are those who argue forbearance plans for unemployed homeowners will only delay inevitable foreclosure, but it’s hope that homeowners who may need extra time in their financial life or in their job search may be able to benefit from this opportunity and find themselves in a position where they can return to making their home loan payments without facing foreclosure.