Unemployment Continues To Hinder Housing But Federal Unemployment Program Offers More Aid

Unemployment continues to be one of the main hinderances in the housing market and within the personal lives of many consumers as well, but there are still opportunities available through the federal Unemployment Program, which is part of the Treasury Department’s Home Affordable Modification initiative, and it may bring about solutions to the problems that some unemployed homeowners face here and November. Recent reports have shown that the number of forbearance plans that have been offered to homeowners, through the month of September, indicated that there were improvements in the number of offers made to homeowners and since unemployment has remained relatively unchanged over the past few months, remaining around 9%, these opportunities for unemployment mortgage assistance may be beneficial for homeowners currently in need.

The number of Unemployment Program forbearance plans that were started between July and August increased from 13,993 to 14,996, with forbearance plans that require homeowners to make no payment improving to 2,772, with forbearance opportunities that may require a reduced payment increasing to 12,224, which was up from the previous month of 11,364. These numbers by the Treasury Department track data through August 2011 and is the most recent information we have on these plans, but homeowners who are unemployed and struggling to make their mortgage payment do need to be aware that even here in November some homeowners are still receiving assistance from this particular opportunity.

Obviously, homeowners are not guaranteed help through this particular plan but there are opportunities available for those who are still suffering from unemployment to avoid foreclosure, bankruptcy, or financial hardships that may result from having no income and other factors like long-term unemployment. Not all homeowners are in a position where they can meet even a reduced payment on their mortgage, and this is where these forbearance plans have been beneficial as homeowners will be able to receive 12 months’ worth of forbearance if they meet these federal qualifications, but of course some homeowners are benefiting from state-specific programs as well.

While it will depend on the particular state in which a homeowner lives, some homeowners who are unemployed are getting payment assistance through certain programs, while others may be able to take advantage of dischargeable loans available in certain states that are not associated with the past program known as the Emergency Homeowners Loan Program. Obviously, each state housing agency will differ in terms of how long this assistance is available, what homeowners may qualify, and homeowners do need to remember that their mortgage servicer will have to be participating in these plans that have been implemented by the Hardest Hit Fund, but officials are still prompting homeowners to seek what may be available in their area as a help for the unemployed in terms of their mortgage payment is still available, but homeowners may also need to go beyond housing payment assistance and look to creditors or counseling organizations to help them find solutions to other debts in their lives so that these mortgage assistance plans may be more affordable if a reduced payment is still required.