Mortgage Forbearance Options For Unemployed Homeowners Available–Will Programs Be Helpful?

Unemployed homeowners have been seeking forbearance options concerning their home loan payments from programs available through the Making Home Affordable plan.  Homeowners, who qualify, may be offered a forbearance on their mortgage through the Home Affordable Unemployment Program but there are some critics who feel that these plans will not prevent long-term problems for unemployed homeowners.

Previously, homeowners may have been able to claim unemployment benefits as income, which allowed some to get a reduced payment on their mortgage through modification plans.  However, these situations saw homeowners default out of their modification program, which led many to point out that income from unemployment was both not enough to afford homeowners the ability to pay their mortgage and unemployment benefits were not long-term.

However, homeowners are now unable to claim benefits as income and, in cases where a homeowner has no income outside of these benefits, there may be forbearance options on their home loan payments.  While it’s believed that some homeowners have been able to use this forbearance time as a way to search for a job without the strains of a mortgage payment following them around, there are still many who feel unemployment mortgage forbearance is only delaying the inevitable.

Obviously, unemployment is still a major problem when it comes to foreclosure, but many feel that allowing homeowners a forbearance period on their mortgage could prevent foreclosure for some.  Yet, there are alternative options from state directed assistance plans that are giving unemployed homeowners options to help with their unemployment predicament.  These plans will vary depending on a homeowner’s state, but since the unemployment situation only seems to be slowly getting better, it’s hoped that these forbearance and alternative unemployment mortgage assistance plans will at least cut down on some of the foreclosures resulting from unemployment.