How to Get Assistance or Help With Mortgage Payments If Unemployed
Unemployment can make it difficult to afford monthly mortgage payments. Luckily, there are options available to help those who lose their jobs keep the house and avoid foreclosure. If your unemployment situation is likely to be temporary and you can afford the payments once employment resumes, government programs may assist with making the mortgage more affordable or deferring payment requirements temporarily.
Other People Are Reading
Instructions
-
-
1
Ask your lender for a voluntary forbearance. A forbearance agreement can halt mortgage payments for a short period of time -- usually three to six months -- to allow a struggling homeowner to work through a financial challenge. The payments are put on hold but are still owed along with related interest when the forbearance period has ended. Mortgage lenders are not required to enter into forbearance agreements in most situations, but it is the quickest method of deferring immediately due payments.
-
2
Apply for the Home Affordable Unemployment Plan. If you qualify, this federally sponsored plan can temporarily reduce your mortgage payments to 31 percent of your income or can halt them altogether for 12 months or longer. Participation in this plan is voluntary for lenders, so find out if your mortgage company is enrolled. At the end of the Plan, if you are still unemployed or cannot afford your mortgage, you may be eligible for a Home Affordable Modification Plan, which can reduce the interest rate on your loan or the principal you owe.
-
-
3
Investigate whether you are eligible for the federal Housing Finance Agency Innovation Fund for the Hardest Hit Housing Markets (HHF). HHF is a fund that helps homeowners in the 18 economically hardest-hit states with mortgage payments or refinancing. Contact your state's housing finance agency for details on eligibility and benefits.
-
1
Tips & Warnings
Before choosing a plan of action, assess whether you can truly afford the house in the future. If not, selling it may be the best option.
Discuss your financial situation with an experienced CPA or trustee in bankruptcy to understand the impact of each course of action on your credit score and your ability to borrow money in the future.
References
More Like This
Comments
-
California homeowners who are on unemployment may qualify for Unemployment Mortgage Assistance from the government's Hardest Hit Fund program. For eligibility and application instructions you can go to the official program site at www.keepyourhomecalifornia.org Nevada and several other states are also offering mortgage assistance to the unemployed. You can check the federal government's website to see if your state has a program at: www.treasury.gov/initiatives/financial-stability/housing-programs/hhf/Pages/default.aspx
