Homeowners who are unemployed or who may be in a financial position where they are simply unable to meet their mortgage payment and may not qualify for a traditional home loan modification have often been able to find opportunities to receive forbearance on their home loan obligation for a set period of time, particularly those who have participated in the Home Affordable Unemployment Program. Yet, these options are still one area of foreclosure prevention that some homeowners may not be aware of, even here in late June, but there are indications that these plans are still being made available to homeowners and can be one source of mortgage debt relief that unemployed individuals may have.
While there are opportunities for unemployed homeowners to receive foreclosure prevention aid from different avenues outside of these forbearance plans, many men and women may simply need a little help for a short period of time, as the federal HAUP initiative allows homeowners to enter into forbearance for at least three months, and this may be extended by a particular servicer for a longer period. The availability of these options though, is still one of the questions that homeowners have as there are men and women who are facing unemployment but may not be in a position to take advantage of programs like home loan modifications, particularly if their household income is only from unemployment benefits.
There are though, still some financial institutions that are offering these forbearance plans for homeowners who are without work, as a report released through the month of April 2011 for Fannie Mae and Freddie Mac stated that 15,627 total forbearance plans had been made up until that point. Understandably, there are still homeowners who may benefit more from other programs, particularly new initiatives that are still being set in place, but options from states through the Hardest Hit Find and the new loan program, which is hoped to help homeowners who are out of work, are both two avenues that homeowners may explore outside of these forbearance opportunities which could be helpful with their foreclosure prevention needs.
Homeowners should understand that when it comes to these forbearance programs, servicers usually will offer the three month period where no payments are made by the homeowner, but an extension beyond that is not required, as some banks will reevaluate a homeowner’s financial position to see whether there are any programs that may help them find affordability until this rough point in their employment career is ended and a job is found. However, there may be some homeowners who, after a short period, may face the loss of their home through foreclosure if there are no options available beyond forbearance, but again homeowners are in a position now where new programs may be able to offer more opportunities outside of simple modifications or a forbearance trial period.