Mortgage assistance for unemployed homeowners may come through either lower mortgage payment opportunities or forbearance plans through programs like the Making Home Affordable plan and the Hardest Hit Fund. Understandably, homeowners who are suffering from unemployment are one of the major sections of individuals who are in need of mortgage assistance but there are some foreclosure prevention opportunities that may not be available to homeowners who are jobless.
As an example, home loan modifications which have been popular among homeowners who have been seeking the opportunity to lower their monthly payments have not been made available to homeowners without some form of stable income, which is obviously problematic for those who are unemployed. Obviously, lenders have been hesitant to offer home loan modification payments to homeowners who are relying on unemployment benefits as their only source of income due to the fact that this is not a stable and sustainable form of income which can be used to prevent foreclosure on a home.
Yet, programs like unemployment forbearance opportunities for homeowners have been proposed by the Making Home Affordable Program and there are also assistance opportunities available through the Hardest Hit Fund. Homeowners who are able to acquire a forbearance on their monthly mortgage payments due to unemployment may benefit as this can obviously give homeowners more time to find a stable employment opportunity or income which may be able to either set them in a position where they can continue making home loan payment or at least qualify for a home modification program.
Despite the fact that homeowners are still struggling with unemployment, these forbearance opportunities may give some homeowners the chance to acquire a forbearance option or lower their monthly mortgage payment to a more affordable level, which is similar to a home loan modification but may only be granted for a limited period of time. However, there are some states which are offering unemployment mortgage assistance through grant-like options or no interest loans, both of which may be used to make payments on a home loan while the homeowner continues to seek employment and income opportunities.
While there are some who feel these options for unemployed homeowners need to be more widespread in that forbearance options may only delay inevitable foreclosure or some homeowners may simply not qualify for a state-specific unemployment assistance program, these opportunities for foreclosure prevention to unemployed homeowners are ongoing and may be available through a homeowner’s particular state housing agency or through working with their servicer in the Making Home Affordable Program.