Mortgage foreclosure prevention assistance programs, like those specifically tailored for unemployed homeowners, have been able to offer certain options for individuals depending on their condition and the state in which they reside, but there are some alternative plans that have been proposed and mirror successful plans that are already in place, but have yet to be fully implemented. Homeowners who may be in a state that was particularly hard hit may have found assistance through the Hardest Hit Fund, but there are some programs that have been in place for years that many officials believe to be more successful and potentially more helpful when it comes to keeping unemployed homeowners in their home.
In an article on MarketWatch.com it was mentioned that a program in Pennsylvania known as the Homeowners Emergency Mortgage Assistance Program has helped homeowners by offering “loans to people who have recently lost their jobs.” Also, these loans “do not accrue interest until the participant’s income is restored.” Understandably, many unemployed homeowners have been willing to try any program that will keep them in their home as long periods of unemployment have kept some homeowners on the edge of foreclosure as they struggle to make ends meet with meager income from part-time jobs or unemployment benefits.
Home loan modifications have been unhelpful by and large to many homeowners who are unemployed due to the fact that they cannot qualify for federal modification assistance since unemployment benefits are not considered a stable source of income. However, forbearance programs have been offered by the federal Making Home Affordable Program and there are state-specific assistance plans in various areas that may either offer homeowners a subsidy to keep their home for a set period of time or loans that will come at 0% interest and may be forgiven if a homeowner remains in their home for a particular duration after this assistance is given.
Yet, this particular program in Pennsylvania is similar to a program that has yet to be implemented in various states known as the Emergency Homeowner Loan Program. Essentially, these programs are hoped to provide loans to homeowners who are unemployed as a way of keeping them in their home until they can find a stable employment opportunity where their income returns at a level that they can meet their mortgage payment obligation. However, there have been some areas that have yet to see funding from this program as the Department of Housing and Urban Development has reportedly delayed funds so that certain states can be better prepared to offer this money to homeowners in need.
However, there are those who feel that this program, along with the modification initiative, should be terminated as they have yet to see success, despite not having the time to be implemented. Other plans like the FHA’s short refinance initiative were also proposed to be cut from the available programs that homeowners may use to address issues like negative equity, but it’s hoped that when this Emergency Homeowner Loan Program is put into place and as continuing efforts from the Hardest Hit Fund produce more results, unemployed homeowners in various areas will see similar benefits as those who have been helped by alternative programs like those being used in Pennsylvania.