Mortgage assistance plans available directly from some state housing agencies are hoped to provide assistance similar to, but extending beyond, traditional home loan modifications and other expansion plans from the Making Home Affordable Program. While homeowners who have suffered from various factors like underwater mortgages or unemployment have attempted to find foreclosure prevention assistance through the federal government’s modification program, these state-specific plans from the Hardest Hit Fund may also bring mortgage payment relief in certain areas.
One area which some of these housing agencies are focusing on is unemployment. Unemployed homeowners, obviously, are difficult to assist when it comes to finding affordable mortgage solutions on their home. Some states, as with the Home Affordable Unemployment Program, may offer forbearance options for homeowners, while others have proposed offering unemployed individuals home loans at 0% interest.
As an example, North Carolina is offering eligible, unemployed homeowners mortgage assistance through a deferred 10-year home loan, which can be used to meet mortgage payments while homeowners continue to look for work or undergo training which may provide employment opportunities in a new field. These loans for unemployed homeowners in North Carolina do not have payments due at all within the first five years and if a homeowner continues to live in their home for 10 years the loan will be forgiven.
While the Hardest Hit Program has provided funding to various states like California, Florida, Michigan, and Nevada, just to name a few, homeowners in states which have been presented with funding from the Hardest Hit Program can either speak with their mortgage servicer or contact their state’s housing agency for more information on state-specific mortgage assistance opportunities.
Some programs have yet to be implemented, while others have only recently begun, but more unemployed homeowners are hoped to find mortgage assistance option in the coming weeks which may help them avoid the loss of their home.