Mortgage Banker Association recently proposed a plan to the Treasury that will help people who become unemployed avoid foreclosure.
Under this new plan, unemployed individuals will receive a reduced mortgage payment for a limit of 9 months. During this time, the homeowner must be actively looking for a job. The reduced mortgage payment through this new plan is not permanent and will only be used as a gateway to the Home Affordable Modification Program. Every 90 days, you will have to show that you have been looking for work and that you still meet the criteria for this home loan modification plan. As long as the homeowners are delinquent or current on their payments, have liquid assets, are looking for work and lost their job involuntary they will meet criteria.
The driving force behind this plan is to keep people from going into foreclosure because of unemployment. Although the economy is in recovery, people are still struggling with unemployment, so this plan is not too late. People will be able to stay in their homes and gain some reprieve during this huge change in their life.
Stay tuned for the Treasurer’s decision on the plan proposed by Mortgage Banker Association…
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