Jobless claims rose last week, the week ending September 10, and has continued to worry some economists as it points to a continued need for economic recovery in the area of employment, due to the fact that many men and women, specifically homeowners, are still being impacted by a lackluster job market and this has bled into other areas of their financial life. It’s because of continued levels of high unemployment, which remains around 9.1%, and these jobless claim increases that homeowners are looking for assistance on their home loan payment, which may be found in programs like the federal mortgage payment forbearance initiative that is a part of HAMP.
The Unemployment Program is something that many homeowners may be aware of it due to the fact that it has been in place for quite some time, but not too long ago we saw changes in the timeframe that homeowners may have to take advantage of forbearance opportunities. Currently, homeowners who may be exploring this option here in September could get at least a year of forbearance on their mortgage payments, which would obviously go a long way in helping them avoid the loss of their home while they continue to look for stable employment.
However, homeowners need to understand that there are certain requirements before they can qualify for this plan, and there are even alternatives that are still in place yet have not been taken advantage of by homeowners in some states. Funding has been made available in areas where unemployment has been particularly troubling, but there are some programs in states that are hosting plans like the Hardest Hit Fund that have seen little demand despite the fact that homeowners are still suffering from unemployment.
Yet, homeowners who are working with their mortgage servicer to use the Home Affordable Unemployment Program need to be aware of the fact that homeowners will have to be eligible for unemployment benefits if they want to potentially qualify for a forbearance on their primary residence, but they must also act quickly before they miss three payments. While this initiative differs from some programs that are offered on a state-to-state basis, all of these unemployment mortgage foreclosure prevention efforts are worth exploring as it can help homeowners either find more affordability or simply avoid the loss of their home through payment assistance plans until a more positive environment arises within the job market.
Some homeowners may be in the process of retraining, going back to school, or are simply looking for work in an industry where they were previously laid off, but no matter what the cause of a homeowner’s unemployment situation may be, speaking with housing counselors or representatives from a homeowner’s state housing agency, not to mention a homeowner’s mortgage servicer, may potentially provide openings to these unemployment assistance plans, which again may be needed more in the coming months as we see continued problems like increases in unemployment claims.