Homeowners who are still suffering from unemployment may have found that they have alternative options when it comes to foreclosure prevention assistance that may go beyond traditional modifications or the Home Affordable Unemployment Program as initiatives from the Hardest Hit Fund are still providing opportunities for homeowners in some of the nation’s hardest hit states who saw not only decreases in property values but are still suffering from high levels of unemployment, which have obviously led to the inability of some homeowners to meet their monthly mortgage payment.
Qualifying homeowners who may be able to participate in the Hardest Hit Fund will usually be working with their state’s housing agency and at times their mortgage servicer, but when it comes to helping homeowners who are unemployed, the programs that may be used within these various plans may differ in how they address issues related to homeowner unemployment. Some may be given a loan which can be used to meet their mortgage payments for a set period of time, will come with no interest rate, and can be forgiven, while other states may simply offer programs that are more similar to grants that will make a homeowner’s monthly payment on their home loan for a particular duration until the homeowner can find a stable income.
Understandably, homeowners have had options through modifications and the Home Affordable Unemployment Program, as this initiative has given some individuals either a more affordable monthly mortgage payment or the opportunity to participate in a forbearance program that will either, again, reduce a homeowner’s payment or allow them to avoid the stress related to their monthly mortgage obligation for at least three months. Some homeowners who are out of work and may be relying on unemployment benefits as their only source of income simply may not qualify for the federal modification initiative, but may still be able to benefit from either a lower mortgage payment or a short period of forbearance.
Obviously, in cases where homeowners may be unemployed but servicers deem these individuals to be in a situation where foreclosure may be avoidable, forbearance plans have been helpful, however, the Hardest Hit Fund was implemented to provide supplementary assistance to homeowners who may have been unable to take advantage of MHA programs that can offer them more affordability.
While these unemployment assistance plans from the Hardest Hit Fund have been helpful in states like Michigan, California, Florida, and Arizona, there are more states that may be able to offer homeowners either some form of unemployment assistance or aid through one of these HHF programs, in the hopes of preventing foreclosure by either making a homeowner’s mortgage payment or offering them the funds to pay their home loan and certain conditions that could discharge any obligation after they have moved on from this program.
Homeowners who speak with their state’s housing agency may find assistance through these particular efforts, but there have also been transition plans available to unemployed homeowners if these foreclosure prevention programs are unhelpful and homeowners are forced to relocate to an alternative living arrangement.