Certain unemployed homeowners have scrambled to find mortgage payment assistance options over the past months as many have seen their income either decrease substantially or disappear altogether. Typically, traditional home loan modifications have been the only option for some homeowners, but as certain unemployed individuals may have no income outside of unemployment benefits, modifications may not be an option when it comes to saving their homes from foreclosure.
However, forbearance plans for homeowners through the Home Affordable Unemployment Program have been made available in the hopes of giving homeowners additional time to find employment opportunities or seek out alternative living arrangements. Many homeowners who do not qualify for modification plans because they are unemployed usually have a forbearance option, but the length of a forbearance, or offer of a home loan forbearance, is at the discretion of their servicer in most cases.
Yet, homeowners in certain states may also benefit from state-specific mortgage assistance programs which are set to address unemployment problems in areas where homeowners have been particularly hard hit by the loss of their jobs. The Obama Hardest Hit Fund has provided funding to various states across the nation who are struggling in the area of housing or have seen decreases in property values.
Some of the state’s plans, usually made through the state’s housing agency, reflect the Obama Making Home Affordable Program, in that they have programs to address issues like unemployment, underwater mortgages, or simple mortgage assistance options.
No matter a homeowner’s unemployment situation, there are opportunities for possible forbearance or mortgage payment assistance through either the Obama Modification Program or these state-specific assistance plans. While no homeowner is guaranteed assistance on their home loan through these unemployment forbearance opportunities, those who are struggling with their mortgage or foresee troubles on the horizon are often prompted to contact their mortgage servicer or state housing agency to inquire about programs available for their situation. Obviously, homeowners who seek assistance early may have a better opportunity at finding foreclosure prevention options than if they wait for their mortgage troubles to grow.