With unemployment rates rising nationwide, it is important to know what mortgage companies are offering benefits for unemployed persons. Here is a guide on some different programs that are available for individuals experiencing financial hardship when it comes to paying their mortgage each month.
Rainy Day Fund
The Rainy Day Fund is a non-profit institution dedicated to assisting individuals who lose their jobs by helping them make their mortgage payment for up to six months. This is a legislative program, endorsed by the government to slow the foreclosure rates in the nation.
Many lenders are offering a temporary forbearance solution that will assist unemployed home owners by forgiving mortgage payments over and up to a six-month duration. The stipulation for this program is that the homeowner agrees to make up the missed payments over time.
Reducing Mortgage Payments
Lenders are providing relief to unemployed homeowners by offering reductions in mortgage payments on a temporary basis. Lenders are accepting payments as little as £325 in many cases, allowing homeowners to stay in their homes, and make up the remainder of the payments once they become solvent.
The mortgage insurance paid into a home can be claimed to advance payments to home owners who experience unemployment. This allows the homeowners to bring the account current and prevent foreclosure.
Homeowners who have experienced temporary financial hardship can sometimes be eligible for a repayment plan once they become financial stable. This allows them to repay the past due balance by adding a small additional amount to their normal monthly payment.
Programs designed to assist home owners dealing with temporary unemployment issues are beginning to impact the housing market by slowing foreclosure numbers nationwide. This is allowing many homeowners across the country to stay in their homes and not have to deal with the devastation foreclosure can cause a family.
Workable mortgage repayment programs successfully slowing foreclosure rates is starting to stimulate the economy, and has a strong potential to revitalise the housing market and help to improve the economy overall.