Recently we have seen trouble arise in the job market as it was just reported that, for the week ending of September 3 jobless claims increased, and we have also seen reports that show no new jobs were created in August and unemployment remains stubbornly high. It’s because of factors such as this that unemployed homeowners are looking for mortgage payment help but in some cases options like a simple modification may not be available to someone who is without a job. However, the Home Affordable Unemployment Program that is still available here in September has shown some positive results over the past few months according to recent Treasury Department data.
Information that we have through the month of June, which was released here in the early days of September, has shown that the total number of forbearance options offered through the Unemployment Program have increased to a total of 13,521. Also, this data has indicated that homeowners are seeing increases in the number of plans that may require some payment, but obviously will be a reduction from a homeowner’s current mortgage payment obligation and there are still options for homeowners to get a payment forbearance, which may now be as long as 12 months.
Governmental officials have all been speaking on the issue of the job market, as there are a variety of different opinions on what needs to be done to spur job growth, since our economy cannot fully recover without employment opportunities being made available to men and women currently seeking employment and full-time options available for part-time workers who are in a position where they would like to transition from one employment opportunity to another. Some figures have the number of unemployed individuals around 14 million at the present time, and it’s understandable that joblessness does impact homeowners in a significant way as a variety of factors in the housing market may prevent these individuals from finding the affordability they need.
Homeowners may face problems related to not only mortgage payments but the inability to refinance for lower rates due to either having issues like negative equity in place or the simple inability to afford the costs that come with refinancing for a lower rate and payment as a result of their employment situation. Yet, it’s hoped that with this Unemployment Program from the Treasury Department being offered by mortgage servicers who are participating in HAMP, more individuals will find either the reduced payment may need or a forbearance option that will be helpful for their situation while they may be either underemployed or out of work entirely and currently seeking a stable income in this difficult job market.