Some homeowners are still aware of state assistance plans that may be helpful for them when they are unemployed as there are loan programs available in some areas from the Hardest Hit Fund, which could be helpful in preventing foreclosure for men and women who have faced financial stress and setbacks as a result losing their job earlier this year or who may have been unemployed for a longer period of time. However, homeowners may be unsure of how these programs work, despite the fact that there are multiple states that participate in these programs like North Carolina’s unemployment assistance plan and Indiana’s Unemployment Bridge Program.
In some cases, homeowners are going to find that these loan programs are beneficial simply because they will help homeowners who may qualify for unemployment insurance and, as a result of their situation, may have difficulty meeting their monthly payment obligation on their home loan. While these programs are not identical from state to state nor are they always offered in areas where the Hardest Hit Fund is in place, programs similar to North Carolina’s and Indiana’s programs, among others, may offer a set amount of assistance to a homeowner in the form of a loan but if certain conditions are met this loan will be discharged over time and the homeowner will end up owing nothing.
Homeowners do need to understand that these plans may be directly from a state housing agency or their servicer may have to participate in the Hardest Hit Fund before these options will be available, but many of the nation’s hardest hit states, meaning those areas where home value decreases and unemployment are particularly a problem, may have these programs in place to help homeowners in need. While this is not a guarantee for everyone who is unemployed, there are some who have benefited from these plans due to the fact that they will be able to keep their home, provided they stay in their residence for a set period of time and meet further qualifications within each state’s particular unemployment assistance plan.
While federal programs like the Home Affordable Unemployment Program may help homeowners who are in a state where this particular type of unemployment loan assistance is not available, as this Unemployment Program allows homeowners a forbearance on their mortgage payments for year for those who qualify. Obviously, the suspension of a homeowner’s payments or assistance through payments made directly to a homeowners mortgage servicer can be a great relief for those who are unemployed and may have had trouble finding either stable employment or a job that will allow them to continue meeting their traditional home loan payments, but homeowners may need to talk with state housing agency representatives in their area soon as some of these programs may have limited funding.
Homeowners need to keep in mind that these programs are no guarantee to help and certain conditions must be met so that the loan is not required to be repaid, but in areas where this particular plan has been available or similar loan programs have been implemented, homeowners may find some reprieve from the strains of being unemployed when it comes to keeping their home, making their mortgage payments, and potentially avoiding foreclosure.