New assistance programs for unemployed homeowners may provide options like unemployed homeowner forbearance plans in the hopes that homeowners may either find a more affordable payment solution or have their mortgage payments suspended for a set period of time. Programs like the Home Affordable Unemployment Program are hoped to begin helping more homeowners through foreclosure assistance methods as homeowners who are attempting to qualify for a home loan modification are unable to benefit from this form of assistance.
Problems within the home loan modification program have come in various forms as homeowners have either accused lenders of not doing all they can to assist homeowners or say lenders are unjustly denying them the assistance that will help avoid the loss of their home.
However, some homeowners are relying on unemployment benefits as their only source of income, and this typically prevents a traditional home loan modification from being offered in certain cases. Yet, where homeowners may not qualify for a modification, this unemployment assistance plan could be beneficial as it is tailored specifically to address the mortgage assistance needs of homeowners who are without a job.
While there are those who argue that forbearance programs are only delaying inevitable foreclosure and, for homeowners who cannot pay their mortgage, delaying foreclosure could have adverse effects on the housing market, there are those who say certain homeowners who may qualify for this forbearance plan may have job opportunities on the horizon and could regain a firm financial ground that allows them to continue meeting their traditional mortgage payment obligation.
Homeowners are still required to work with their mortgage servicers and a forbearance period is said to be at a servicer’s discretion as to if it will be offered or the duration of a suspension on home loan payments. Obviously, not all unemployed homeowners may qualify for this form of assistance, but unemployment assistance opportunities may also be available through state-specific home loan aid plans like those offered from the Hardest Hit Fund.