Home Loan Assistance For Unemployed Through HUD–Loan Program To Assist Jobless Homeowners With Mortgage Payments

A home loan assistance program targeted to the unemployed may provide some homeowners with assistance available in the form of loans of up to $50,000, which obviously can be used to make mortgage payments, if certain conditions are met. This program is hoped to offer more aid to those who are struggling with unemployment and face the loss of their home as a result, but there are still homeowners who have yet to see assistance from this program.

In a recent report from Housingwire.com, the issue of this Emergency Homeowners Loan Program was mentioned as there are concerns over the enactment of this loan program on the part of the Department of Housing and Urban Development. Initially, the program was set to be fully implemented in October of 2010, but there are still concerns over the fact that some homeowners have not been able to take advantage of this unemployment foreclosure prevention opportunity.

While the Department of Housing and Urban Development has given the impression that this program will be available to homeowners at the beginning of 2011, there are still many jobless individuals who are fighting to stay afloat when it comes to meeting their mortgage payments and other financial obligations. Programs like the Home Affordable Unemployment Program have also been the target of many homeowners who are jobless and continuing to look for work, as this initiative may offer a lower mortgage payment to homeowners without a job, similar to a home loan modification, or may offer a forbearance on home loan payments for a set period of time.

HUD released guidelines for the program which indicated that homeowners who obtain one of these loans will be allowed to borrow up to $50,000 in total assistance, but of course this could be smaller for some homeowners depending on their mortgage payment and the duration of their unemployment. Yet, according to the guidelines of the loan repayment terms, a homeowner will no longer receive assistance once their income has been restored to more than 85% of what they were formally earning, and at this point they will be transitioned from the program as they will resume making their monthly mortgage payment. Yet, a homeowner is not required to make a payment on this loan during a five-year term and if they remain current on their mortgage the balance due on their Emergency Homeowners Loan Program will decline by 20% each year until the debt no longer remains.

There are some states, like North Carolina, who have implemented similar loan programs for homeowners through the Hardest Hit Fund which have allowed for unemployed homeowners to gain funding which can be used to prevent the loss of their home.  Yet, concerning these unemployment loans, reports have also indicated that this has been quite successful for a large percentage of homeowners who qualify. However, these programs are not fully available and, again, may not be an option for unemployed homeowners until the earlier parts of 2011, yet this is hoped to be another unemployment assistance program which can help homeowners who are seeking a job avoid the loss of their home.