Unemployed homeowners may find mortgage forbearance options from their mortgage servicer through foreclosure prevention programs and home loan assistance plans. Homeowners who have lost their job, and may be relying on unemployment benefits as their only source of income, have found that new rules may prevent them from certain types of home loan assistance.
Homeowners who have unemployment benefits as their only income may not be able to use them as a claim of income for mortgage assistance programs. Obviously, with no claim to income, some foreclosure prevention programs may be unavailable to these homeowners, but there may be hope in the form of foreclosure forbearance.
While forbearance programs for unemployed homeowners may be offered by a variety of major mortgage servicers, there are critics who feel these types of assistance plans are unhelpful in the long-run. Critics of unemployment forbearance homeowner assistance plans say that these programs will only delay inevitable foreclosure on homes where homeowners are unable to find stable employment.
Yet, there are homeowners who may stand to benefit from these plans as forbearance for a set period of time could allow them the reprieve from their mortgage difficulties they need to find a job that allows them to resume the payment schedules on their financial obligations. Also, in a worst-case scenario, homeowners may be able to begin making alternative living arrangements during their forbearance period or take advantage of foreclosure alternative programs that are offered to help homeowners facing the loss of their home due to factors like unemployment.