Homeowners who are struggling to meet their mortgage payments due to factors related to being unemployed may have options through home loan assistance from grants or loans which are available through various foreclosure prevention programs which are being implemented in various states. There are programs, like those from the Hardest Hit Fund, which can offer homeowners assistance through grant-like options which will make a homeowner’s payment while they are unemployed up to a set amount or offer them a loan which can help meet their monthly mortgage payment and, provided a homeowner stays in their home and continues to make on-time payments when they have found an employment opportunity, this loan may be discharged at no cost.
Examples of these grant-like assistance opportunities for homeowners come through programs like the Keep Your Home California unemployment mortgage assistance plan which provides a mortgage payment assistance plan of up to $3000 for qualifying unemployed homeowners for up to six months in the hopes of avoiding preventable foreclosures while a homeowner continues to look for job. It needs to be understood through, homeowners are not given the money from these assistance plans, but the money will help by subsidizing mortgages for unemployed.
These unemployment assistance plans which are providing, essentially, the option for homeowners to have their mortgage subsidized while they are seeking employment or have the option of borrowing a no interest loan which, again, can help meet costs associated with their mortgage for a set period of time. These programs are hoped to offer homeowners who are unemployed a form of forbearance where they are not having to meet mortgage costs out of pocket, since they may be relying on unemployment benefits as their only income or have no income at all.
Understandably, not all homeowners may qualify for these programs as they are typically set to help homeowners who are in a position where they have the opportunity to avoid foreclosure because their mortgage situation is not to a point where they are in a dire predicament or may be in over their head. Obviously, factors like unemployment are hoped to begin fading in 2011, but there are those who feel that unemployment will still remain a problem for years down the road as it will take time to create the jobs that were lost during the recession.
Yet, for homeowners who have been unable to acquire a home loan modification or another affordable foreclosure prevention, these Hardest Hit Fund assistance plans and loan opportunities are hoped to bring the security and relief that unemployed homeowners need while seeking out employment opportunities.