Mortgage forbearance plans may be available to certain unemployed homeowners who are having difficulty meeting their monthly mortgage payments. Hopes for a tier 5 unemployment benefits extension had many homeowners feeling that they could continue meeting certain financial costs or qualify for assistance plans like home loan modifications, which could help them avoid the loss of their home.
Yet, changes in some programs do not allow homeowners to claim unemployment benefits as income when being considered for certain foreclosure prevention assistance options. Homeowners may be considered for unemployment home loan forbearance options, which could be helpful for a set period of time when it comes to unemployed homeowners either finding employment or alternative living arrangements.
Understandably, unemployed homeowners, like any other homeowner, wants to avoid the loss of their home at all costs. Some homeowners who may have little or no income due to unemployment may benefit from these unemployment forbearance plans, but there are critics who feel that mortgage forbearance is not a long-term solution.
Unemployment has been a major cause for numerous home loan difficulties over the past years, but many feel that forbearance options for unemployed homeowners will only delay the inevitable. While some feel, again, forbearance on mortgage payments can give homeowners additional time to find employment or resources which will allow them to meet monthly mortgage payments, there are those who feel that, with current unemployment rates, forbearance plans may be unhelpful at the present time.
However, programs like the Home Affordable Unemployment Program have been implemented to assist homeowners who are specifically having mortgage troubles related to unemployment. While, again, mortgage modifications or forbearance options could be helpful for some, unemployed homeowners are being advised to contact their servicer to ask about these options, no matter their situation. There are those who may be unable to benefit from mortgage assistance due to unemployment, but homeowners may have an opportunity to save their homes, even if it’s just in the short term, through these unemployed homeowner assistance plans.