Mortgage Payment Forbearance Plans For Unemployed Homeowners–Will Home Loan Assistance Programs Help Jobless?

Unemployed assistance for homeowners who are still seeking a job may be available through various governmental programs, which may offer forbearance options on mortgage payments for those who qualify. The Making Home Affordable extension program called the Home Affordable Unemployment Program is said to offer homeowners who do not qualify for modifications the opportunity to obtain a forbearance on their mortgage for a set period of time.

There are also some state-directed mortgage assistance plans which may also offer these forbearance options or other unemployment mortgage assistance opportunities for homeowners who are struggling. Yet, there are those who are concerned over whether forbearance plans for unemployed homeowners will be helpful in foreclosure prevention efforts in the long run.

Obviously, jobless homeowners who have either been dependent upon unemployment insurance or drastic reductions in their income may not qualify for traditional mortgage modification plans, but questions over whether a forbearance option would be of any greater assistance have arisen. Many feel unemployment forbearance opportunities would simply delay inevitable foreclosure, but there are proponents of these unemployment assistance programs who feel that homeowners that may be given the opportunity to be alleviated of some or all of their mortgage obligations may be able to put themselves in a better position financially or find an employment opportunity which will allow them to, at worse, qualify for a modification.

There are some states who are offering loans to unemployed homeowners, some of which are at 0% interest and may be forgiven after a set period of time, but many analysts feel that until economic conditions and the job market improve these forbearance or unemployment mortgage assistance plans do not offer long-term solutions.

However, homeowners are still being prompted to either talk with their mortgage servicer or contact their state’s housing agency for more information on available opportunities for unemployment mortgage forbearance or assistance for their particular situation.