Mortgage Forbearance Programs For Unemployed Homeowners–Is Forgoing Payments Helpful?

Unemployed homeowners have, over the past months, then able to take advantage of forbearance programs on their home loans through opportunities like the Home Affordable Unemployment Program. Obviously, unemployment remains a major problem for a variety of homeowners and has necessitated that assistance plans be offered that simply go beyond traditional home loan modification plans.

While some homeowners who are unemployed will, understandably, have no income, others may be living on a reduced income which is from unemployment benefits. In these situations, homeowners may be unable to qualify for a modification and had previously faced the loss of their home without assistance. Yet, these unemployment forbearance opportunities were offered as a way to give homeowners more time to find employment without fearing the loss of their home.

However, many opponents of these forbearance programs often point to the fact that homeowners who are without a job, and have been unemployed for the long term, may simply be delaying the inevitable, which is causing trouble in the housing market. While no one wishes to see homeowners who are without a job kicked out on the streets, there are those who feel unemployment forbearance opportunities are simply unhelpful in assisting a homeowner find sustainability which will allow them to avoid foreclosure.

Yet, there are also arguments which state that homeowners can greatly benefit from unemployment forbearance programs in a variety of ways and that in cases where homeowners may be unable to continue owning their home, there are at least opportunities for a homeowner to find employment or make alternative living arrangements during the forbearance period.

Homeowners may qualify for an unemployment forbearance program through their mortgage servicer as part of the Making Home Affordable Unemployment Program, but there are state-specific mortgage assistance plans which may be available to unemployed homeowners that are offered directly from various state housing agencies. While many unemployed homeowners have faced foreclosure over the past months, there are still opportunities for homeowners who are without a job to avoid the loss of their home while they continue to seek stability in their financial life.