7 Mortgage Assistance Options For Unemployed Homeowners
Although President Obama's Emergency Homeowner's Loan Program (EHLP) expired on September 15
, 2011, unemployed and underemployed homeowners have other options for help. Here are the highlights of expired emergency homeowner's loan program. Unlike other government designed loan modification programs, EHLP specifically targeted borrowers that were at least three months delinquent in their payments; a situation that many families found themselves in.
If the borrower could demonstrate an income drop of at least 15% as well as a reasonable likelihood of being able to resume repayment (i.e., find a new job) of their mortgage payments and related housing expenses within two years, they could qualify for an interest free loan.
The 24 month loan would be a forgivable, deferred payment "bridge loan" (zero percent interest, non recourse, subordinate loan) for up to $50,000 to assist borrowers with their missed mortgage and future payments on their mortgage principal, interest, mortgage insurance premiums, taxes and hazard insurance. It was a great program and maybe it will be revived with the unemployment picture not getting better and the President entering a hot election season.
Here Are 7 Mortgage Assistance Options For Unemployed Homeowners
Despite the expiration of the EHLP, other foreclosure and loss mitigation programs are available. Struggling mortgage borrowers who are in immediate need of help can try these seven mortgage assistance options for unemployed homeowners:
1) Contact their local HUD-approved housing counseling agency.
2) NeighborWorks America runs the National Foreclosure Mitigation Counseling (NFMC) program. Homeowners can call 202-220-6314 for information or visit the website neighbor works.
3) If you have an FHA loan and need emergency assistance, you may contact the National Servicing Center (NSC) at 877-622-8525. FHA offers a number of loss mitigation programs and informational resources to assist FHA insured homeowners who are facing financial hardship, and whose mortgage is either in default or at risk of default.
4) A website called Hope Now has a variety of information about programs and options to help homeowners. Learn about repayment plans, forbearances as well as other programs like the Fannie Mae home saver advance low interest rate loan.
5) The Home Affordable Modification Program (HAMP) is still around. This program helps the most at risk borrowers in default and those that are at risk of imminent default stay in their homes through a modification process to establish an affordable monthly housing payment. Qualification details are available at the website for Hope Now.
6) President Obama established the Hardest Hit Fund in February 2010 and subsequently added $2 billion to it to provide targeted aid to families in states hit hard by the economic and housing market downturn. The hardest hit fund programs vary state to state, but may include mortgage payment assistance for unemployed or underemployed homeowners, principal reduction to help homeowners get into more affordable mortgages, funding to eliminate homeowners' second lien loans or help for homeowners who are transitioning out of their homes and into more affordable places of residence.
7) Counseling is always available to you at no cost through the hopenow website portal so you can talk to a qualified home retention agent.
Don't Give Up; Try All The Options
Despite the expiration of EHLP, there are plenty of mortgage assistance options for unemployed homeowners and even people with jobs who can't afford their monthly mortgage payment. At this time, some financial resources are available through the federal government, some through participating lenders, some through state government and still others through local HUD approved housing agencies. Even if you run into a brick wall with one type of program, don't give up because there are several others.
by: Nathan Randall
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