Unemployed homeowners may be aware of current assistance options that are available and, for some programs, there are deadlines that are coming in a matter of days which need to be remembered if these men and women are to take advantage of foreclosure prevention assistance specifically tailored to unemployed homeowners. However, many of the programs that are available to unemployed homeowners may require that proof be shown that a homeowner has lost their job and, in some cases, a homeowner may be in a position where they have to be collecting unemployment benefits before they qualify. While this may not be a problem for some, as there are countless homeowners who are relying on unemployment benefits income at the present time, questions have arisen as to how long should a homeowner wait before contacting their servicer to inquire about unemployment assistance.
Obviously, the transition from one job to another has varied from homeowner to homeowner, as some men and women have only been out of work a few weeks while others have seen long-term unemployment plague their life and are in a position where foreclosure may be inevitable due to the fact that they might have exhausted their unemployment benefits or may have drained any savings they had. Sadly, homeowners are going so far as to dip into their retirement savings, in some cases, as a way to simply stay afloat in terms of their debt obligations, so it’s obvious that in these instances homeowners may have waited too long before seeking out mortgage payment assistance.
While there is no set amount of time that a homeowner should wait before exploring unemployment assistance, if making a mortgage payment has become problematic after losing a job, homeowners will obviously want to begin addressing these difficulties earlier, but if an individual has lost their job but has prospects of a new job on the horizon, it may be the case that these unemployment assistance plans are not needed. This is where a homeowner will simply have to make a personal decision in assessing whether they stand a chance of getting a job that will help them meet their monthly payments on their home loan or if, at best, they may get a job that simply means in a meager amount of income.
Some of these unemployment plans will offer aid to homeowners who are underemployed, meaning they saw a drastic reduction in net income, so this is something that needs to be considered as well as not only are jobless homeowners suffering but some homeowners who had previously been able to meet their mortgage payment are now in a position where they are employed but are having trouble meeting these obligations.
However, when homeowners have decided what their timeframe for seeking assistance may be, it needs to be understood that where a homeowner gets in a situation where they are close to draining a savings account or retirement account should not even be reached before they look to these unemployment assistance opportunities to help them meet their mortgage payments. New programs like the Emergency Homeowners’ Loan Program or the federal Home Affordable Unemployment Program may offer assistance to homeowners through either mortgage payment aid or forbearance programs, so for homeowners who feel that it may be a while before they can get back on their feet, contacting a servicer or housing counselor may be helpful so that they can explore their options and begin preparing for financial hardships related to unemployment.