It was recently reported that unemployment claims rose for the week ending January 22, which was an increase from the previous report indicating that the unemployment situation in our nation may still have a long way to go before reductions in these numbers begin to be seen as the amount of employment opportunities being created from month-to-month are simply not enough to absorb all of those who have lost their job thanks to the economic downturn. However, unemployment has particularly affected homeowners, but mortgage help through various programs tailored to unemployed individuals may bring benefits when it comes to foreclosure prevention while homeowners are still seeking a job.
One of the more popular programs is the Home Affordable Unemployment Program which offers a forbearance on home loan payments to homeowners who qualify. Individuals who have lost their job and are able to collect unemployment may qualify for this particular program while they continue to look for an employment opportunity, but there are also some programs from state-specific initiatives which could be beneficial as well.
Hardest Hit Fund programming has allowed for certain unemployed homeowners to take advantage of programs where these plans pay a homeowner’s mortgage for a set period of time until they are able to get back on their feet, in terms of employment. Obviously, these assistance plans have offered a great deal of peace of mind and financial aid to homeowners who were left wondering what will become of their home as they were cut from their job, but as long-term unemployment remains a problem there are those who are questioning whether these programs will ultimately be useful.
There are some analysts who feel that unemployment home loan assistance is simply delaying inevitable foreclosure due to the struggling job market and until long-term unemployment can be combated, homeowners who are offered some form of unemployment mortgage assistance will still continue to suffer when it comes to meeting their mortgage payment. While there are obviously some homeowners who will not benefit fully from these programs as, despite being offered aid, may still be unable to meet their monthly mortgage payment due to long-term unemployment and the expiration of these programs, homeowners have benefited from forbearance and state-assistance programs which offer these foreclosure prevention measures.
Obviously, these programs do have their problems and may, in some cases, delay inevitable foreclosure, but there are still foreclosure prevention options available to unemployed homeowners that can help those who may only need a little extra time and help with their mortgage while they look for an alternative employment opportunity. Yet, homeowners are advised to contact their servicer early if financial difficulties or unemployment becomes a problem as the sooner this issue is addressed the easier it may be to find an unemployment foreclosure prevention program that is right for a particular homeowner’s situation.