Unemployed homeowners may have forbearance assistance through the Home Affordable Unemployment Program, which is hoped to provide temporary assistance to homeowners who are having difficulty making their monthly mortgage payments due to unemployment. Homeowners who may qualify for this unemployment program may either have a payment reduction or, at their servicer’s discretion, may have their payments suspended.
However, there are those who feel that an unemployment mortgage assistance plan like this forbearance program may be unhelpful in the long run as homeowners who are unable to find employment will typically face the loss of their home after their forbearance period has ended. Yet, there are arguments that say homeowners who do qualify for a mortgage forbearance and are seeking employment will have additional time to do so without facing foreclosure.
In the past, homeowners who have been unemployed have attempted to gain mortgage assistance through a modification plan, but despite having their monthly mortgage payment obligation lowered, many homeowners have still been unable to meet these payments and have defaulted as a result.
While defaults and foreclosures remain a problem for homeowners and servicers, this unemployment mortgage assistance plan is hoped to either provide payment reduction options for homeowners or a forbearance opportunity in the hopes that additional time will be given during which a homeowner can find employment that will allow them to either resume their traditional mortgage payments or perhaps qualify for a home loan modification if further home loan aid is needed.