Homeowner Unemployment Modification Plans Offering Lower Payment May Be Unavailable Through Traditional Programs

11/08/2011
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Over the past months we have seen inquiries into homeowner unemployment modification plans, as there are those who are currently without a job that hope to take advantage of modification options that are currently in place but homeowners may be unaware of aspects of these programs that could make traditional modification plans that offer lower payments unavailable to homeowners who are unemployed. However, unemployment assistance is available for those who are currently looking for ways to avoid foreclosure and may want to take advantage of options that may offer a reduced or even no payment for a set time.

Yet, homeowners are still being made aware of the fact that traditional modifications like those from the Home Affordable Modification Program usually not open to homeowners who are unemployed as past problems that arose early in the modification program led to changes in qualifications that, when homeowners are relying on unemployment benefits as their only income, may disqualify some for this type of help. However, reduced payments and even forbearance options can be made available from the federal modification initiatives through extension programs, or there may be help specifically from a homeowner’s mortgage servicer when unemployment is a problem.

While reduced payments may not help some, there are those who can benefit from lower payment obligations or even the opportunity to forgo making payments for a set time yet there are some states that have also opened avenues for homeowners to take when unemployment is a problem. In some cases, homeowners may be able to take advantage of subsidies available from certain programs that will essentially make a homeowners mortgage payment for a set time or up to a set amount, but there are of course dischargeable loan programs that homeowners have seen in the past and, once again, these plans may be able to offer the help that homeowners need when unemployment is in place.

Obviously, it goes without saying that homeowners who are in a position where they have lost their job will hope that a reduced payment plan is available, it is to be understood that traditional routes like federal modifications are not always open to homeowners in need when unemployment is in place, but this by no means indicates that there are no opportunities for help available. Simply put, homeowners may have to explore options like forbearance plans, private mortgage assistance opportunities, or these state programs that are available in limited areas that may also address mortgage payment issues that arise as a result of joblessness.

While there are some federal programs that do indeed address these unemployment plans, homeowners may benefit from simply talking with their mortgage servicer or even a housing counselor made available from the federal modification initiative to see what can be done when unemployment is in place. Yet, homeowners are still being urged to make sure they consult with resources or begin the application process when one of these programs is available as soon as they can as unemployment for some individuals has been a long-term problem.

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