Homeowners who are unemployed may have had opportunities to apply for the Emergency Homeowners’ Loan Program, as there are some men and women in states where alternative programs like the Hardest Hit Fund has not been offered but these dischargeable loans through the EHLP may have potentially offered foreclosure prevention assistance to those who qualify. However, there has been some concern as application deadlines have passed but there is also the concern that the funding which was set aside for this program may not go to help as many homeowners as it potentially could have thanks to a September 30 deadline.
While there are unemployment assistance programs beyond the EHLP, homeowners who have applied for this particular type of assistance are in a position where they may not help due to the fact that there have been some problems in terms of requirements that homeowners must meet or the simple inability of agencies to process applications and begin distributing funds. There have already been extensions of this program and there are current proposals that would give these agencies more time to process applications and potentially use a greater amount of funding to help homeowners, but there is still some uncertainty as to whether there is enough time left to pass an extension that would potentially help more homeowners before funding for this program will not longer be used in this capacity.
However, homeowners may want to be aware of other unemployment assistance plans that may be in their area or available from their mortgage servicer, as not all homeowners who have lost their job will necessarily have to face foreclosure as a result. Essentially, homeowners may have opportunities for unemployment assistance through a forbearance plan that is part of the Making Home Affordable Program, and this opportunity has been available for quite some time to aid homeowners without a job but are in a position where they may benefit from 12 months of forbearance on their payments.
Also, homeowners are being reminded of Hardest Hit Fund programs in various states due to the fact that there are some housing agencies who have not used all of the funding in these areas as well, and homeowners may have opportunities to avoid the loss of their home through dischargeable loan programs or payment assistance initiatives from their particular state. The HHF and the EHLP are available in different states, as the Hardest Hit Fund was set to help states that had a particularly high level of unemployment and other housing market problems, so homeowners who may not qualify for this particular loan program may also be able to consult with their servicer or state housing agency to get assistance from either the federal MHA program or plans made directly from their state that can help them keep their home while they look for stable employment.