As we conclude the final full week of May it was reported that, during the previous week, jobless claims rose, which for some was a surprise due to the fact that these claims have been declining recently and led many to feel that the job market and unemployment problems which have been experienced over the past years may finally be on the mend. However, there are still many consumers who are facing employment difficulties as not only is joblessness a major problem for some, but being underemployed is also something that has caused a great deal of financial strain in the lives of men and women ranging from recent college graduates to homeowners. Yet, for those who are facing difficulties related to their mortgage, as an example, there are home loan payment assistance programs available for these unemployed workers through forbearance opportunities, payment programs, and other efforts to help avoid foreclosure.
The issue of unemployment has been an ongoing topic that has been covered from a variety of aspects and these programs which are being reported on have also been repeatedly presented to homeowners who may either be struggling to stay afloat, finding that they are now in a position where one of these programs may be needed thanks to continued unemployment claims, or there are some homeowners who have simply exhausted all of their resources when it comes to meeting their monthly payments without help.
Sadly, reports like the one mentioned above have led to new homeowners to begin considering what form of help may be available for their particular situation if long-term unemployment becomes a problem. While there are indications that the private sector is hiring more workers, many men and women are stuck in a position where they are either overqualified or may not have enough experience for the jobs that are currently opening. Yet, when it comes to homeowner payment help for the unemployed, the federal modification program does offer an extension plan that will allow forbearance on a homeowner’s mortgage payment for at least three months, but what homeowners may benefit from more than that comes from the Hardest Hit Fund.
This particular program has been covered in depth as there are ongoing changes in not only the availability in certain states, but as to what servicers are extending the assistance plans to states that qualify, so homeowners must check with not only their state housing agency but also they are mortgage servicer as to whether these plans are available in their area. Yet, depending on the state and availability of unemployment assistance, the HHF can bring programs that will offer payments for a qualifying homeowner directly to their servicer for a set amount of time or the opportunity to borrow a 0% interest loan that will be forgiven if a homeowner qualifies and remains in their home for a set period.
While it’s hoped that these unemployment programs that offer foreclosure prevention will be needed less and less as 2011progresses, homeowners who are currently facing unemployment or may have been out of work for quite some time and have exhausted their resources are both in a position where these plans may be beneficial, but taking action soon will be required as these plans may be limited in some areas.