The issue of unemployment has remained present in our nation’s economy and the lives of many men and women over the past years as unemployment has remained high not only on a national scale but in various states as well. Despite the fact that it was reported that the jobless rate fell in April 2011, there are still homeowners here in May looking for foreclosure prevention assistance due to the fact that unemployment has caused them to drain their savings accounts and stretched them to their limits when it comes to meeting debt obligations like their home loan.
Yet, consumers have been made aware over the past months of unemployment foreclosure prevention plans that are in place and opportunities available directly from states that are being made available, but still homeowners question whether these options will help those who are unemployed keep their home since the job market does continue to remain unwelcoming for some. There is some hope that in the coming months more jobs will be added as indications that private industries are beginning to increase their workforce has left some of the mind that unemployment may finally be on its way down, but it will take a great deal of time for many to see these potential opportunities in the job market.
Homeowners are still wary, though, that unemployment may remain high and the jobs that are being added in the private sector are not either enough or in areas where those who have lost their job will be able to take advantage. However, some of these unemployment foreclosure prevention plans can offer assistance to homeowners for up to two years, if not longer, in states where particularly high levels of unemployment are still in place and have seen little reduction over the past weeks and months.
One of the more common programs that homeowners have looks to for assistance has been an extension of HAMP known as the Home Affordable Unemployment Program, which either offers homeowners a reduction in their mortgage payment or three months of forbearance on their mortgage payment. Unemployed homeowners do not qualify for modifications when their only income is from unemployment benefits, so allowing these homeowners at least 12 weeks or more to get back on their feet financially can be helpful, but again, long periods of unemployment have kept many homeowners in a position where this timeframe of assistance is simply not enough.
Yet, homeowners need to also be aware of plans directly from their state’s housing agency as some are offering subsidies or 0% interest loans to homeowners who may find that the unemployment situation in their particular area is worse than that on a national level. Certain states have seen unemployment rates that are much higher than the national average, and as a result, have been offered these plans to help them find stability when it comes to meeting the monthly payment on their mortgage while they continue to look for work. These programs are not available in every state, and thus will require that homeowners speak with their state housing agency or mortgage servicer to see whether they qualify, but in certain scenarios, homeowners may find foreclosure prevention for a longer period through these plans while they are continuing to look for stable employment.