The homeowner Unemployment Program offering forbearance opportunities from the federal Making Home Affordable initiative saw improvements between reports released by the Treasury Department from July to August, as information tracking the progress of this particular plan showed that between June and July of 2011 there were increases in the total number of forbearance plans that had been started. However, we have also seen changes in the aspects of this program in which homeowners may find themselves, as there are some opportunities for homeowners who may be able to forego payments entirely while others are simply in a position where a reduced payment may be available.
Homeowners who pursue the Unemployment Program as a way to help avoid foreclosure are usually in a position where they either can’t make a payment on their home or may not qualify for federal modification program, either because of income requirements or the inability to even meet a payment that may come as part of a lower mortgage payment agreement through a modification. Yet, some homeowners are seeing reduced payment opportunities from this finance program, but again many homeowners are benefiting from the simple option that allows for a forbearance on a mortgage payment for a minimum of 12 months.
Between June and July and the number of plans started as part of the federal Unemployment Program increased from 13,521 to 13,993, with plans requiring some payment on the part of a homeowner increasing to 11,364, which was up from 10,881. Yet, between June and July, these numbers show that unemployment forbearance plans that did not require a payment decreased as the total numbers tracked in this category dropped from 2,640 to 2,629.
However, homeowners are still encouraged to speak with their servicer if unemployment is a problem as this particular forbearance opportunity could greatly help when it comes to avoiding foreclosure, particularly when modifications or other popular forms of foreclosure prevention are not helpful. Homeowners have not always been able to qualify for payment reduction plans nor have homeowners always benefited even when they have gotten a lower modification plan, but a forbearance opportunity from this particular program, which again may last a minimum of 12 months, can go a long way when it comes to helping certain homeowners avoid losing their home, but even in instances where there may be some payment required, homeowners might see servicers work to find a more affordable payment option than other forms of payment reduction initiatives may be able to offer.