When someone unfortunately losses his/her job, one of the biggest problems he or she has to manage is making the monthly mortgage payments. If you're also going through this kind of hardship, then there are some useful measures you can adopt to prevent yourself from being foreclosed. But it is important to remember that as soon as you opt for the solution, the better. Getting too much behind of your payments could get worse & you might have to face the consequences. Fortunately the federal govt. is also encouraging the lenders to communicate with the struggling jobless homeowners & help them to stop foreclosure.
Different mortgage help programs
There are several federal & state institutions which render helping hands for unemployed homeowners. The step to get these help are :
a) You first need to consult a housing counselor who must be certified by HUD. Many private & non-profit housing companies are certified by HUD to provide professional help throughout the nation. Their main job is to provide assistance regarding housing & foreclosure prevention to any homeowner. Starting from financial consultancy, these institutions are well equipped with modern day mortgage information & remedies, interactive free voice call system which will provide you with a list of professional counselors as per your requirement.
b) Secondly, you should contact the company where you're sending monthly payments, i.e your servicer company. The federal govt. has started a Home Affordable Program which provide assistance to the homeowners who can't pay the monthly payments. This program reduces the mortgage payment & also put a restriction at 31 percent of the gross monthly salary. This program is called The Home Affordable Unemployment Program or UP. This program gives chance to the borrowers while giving some extra time period. In the meantime the monthly payments are reduced or totally stopped by the servicers.
c) Before giving the service, the mortgage servicer will verify your eligibility. So, you might be requested to submit specific documents as a proff. You might need to receive unemployment benefit for 3 month's consecutively to be eligible before the forbearance. You must also have to convince the servicer along with proper evidence that you are occupying the home & the loan itself has not been modified earlier. The loan must not also be eligible for a permanent modification aided by federal govt. Be reasonable while describing the situation for which you have stopped making payments.
d) You must get the assistance from state govt as well. Different states have their different help programs regarding unemployed home ownership problems. For en example, California state mortgage help program for unemployed provides support by paying up to six month's monthly payments on behalf of the homeowners if they are involuntarily unemployed. This service is provided without any cost.
Do not waste time
Time is money when it comes to getting mortgage help for unemployment. As soon as possible, you must ask for the help of your lender to get maximum choices to avoid foreclosure. The Home Affordable Unemployment Program “UP “ require the homeowner to be unemployed, for at least 30 days unless they can't apply for the help or get qualified. These programs can give you a breathing space by paying your mortgage for three to nine months. However, within the same period, the lender can send you notice of default on payments & initiate foreclosure sales.
Eligibility criteria for “UP” program:
You can qualify for a payment reduction or suspension of monthly mortgage installments through this program if certain criteria is met by you:
* Fannie Mae or Freddie Mac not holding your mortgage.
* You must be an unemployed homeowner & you have sufficient documents to prove that you're eligible for unemployment benefits.
* The house is occupied by you as primary residence.
* The loan must not be modified previously under HAMP. Homeowners/borrowers are eligible for “UP” who were previously denied for HAMP modification.
* The loan must be originated on or before January 1, 2009.
* The unpaid loan principal amount should be equal to or less than $729,750.
* You are about to default on your monthly payments or get delinquent on maximum 3 payments.
Alternate methods
There are few options other than the above given one's, specially for those homeowners who can't afford monthly mortgage payments or be eligible for loan-modification. Notably, a short sale or a deed-in-lieu of foreclosure might be the best choice in this situation. You will be loosing your home for sure in both the cases, but somehow you can manage to avoid the financial effects of foreclosure through those options. However, it is advisable to select a professional consultant, may be a reputed housing counselor or a lawyer before choosing a foreclosure alternative. Perhaps one of these quick options might work better for you than temporary mortgage assistance.