facebook
twitter
rss
account
search
search
 

Unemployed homeowners get more relief

July 7, 2011 at 2:25 PM   |   Comments

| License Photo
WASHINGTON, July 7 (UPI) -- The Obama administration announced Thursday it will offer additional mortgage relief to unemployed homeowners across the United States.

Under the policy changes, mortgage companies collecting payments on Federal Housing Administration-backed loans will be required to offer 12 months of forbearance for qualified unemployed borrowers, the White House said in a release.

Out-of-work borrowers with these loans now can receive a minimum of four months without mortgage payments.

Companies participating in the administration's Home Affordable Modification Program will also be encouraged to offer up to 12 months of forbearance for unemployed borrowers.

These adjustments will provide much-needed assistance for unemployed homeowners trying to remain in their homes while looking for work, the administration said.

"The current unemployment forbearance programs have mandatory periods that are inadequate for the majority of unemployed borrowers," Housing and Urban Development Secretary Shaun Donovan said. "Today, 60 percent of the unemployed have been out of work for more than three months and 45 percent have been out of work for more than six. Providing the option for a year of forbearance will give struggling homeowners a substantially greater chance of finding employment before they lose their home."

Federal housing officials said changes to MHA's Home Affordable Unemployment Program will require participating loan servicers to extend the minimum forbearance period from 3 months to 12 months for eligible unemployed homeowners, whenever possible subject to investor and regulator guidance for each mortgage loan. Additionally, forbearance under the Unemployment Program will be available to borrowers who are seriously delinquent.

All FHA-approved servicers must participate in the agency's Loss Mitigation Program, which includes the special forbearance program, housing officials said.

© 2011 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
Most Popular
1
Reports claim Ukraine used cluster bombs in Donetsk city Reports claim Ukraine used cluster bombs in Donetsk city
2
Marijuana decriminalized in Philadelphia Marijuana decriminalized in Philadelphia
3
Early completion of refit of Italian aircraft carrier Early completion of refit of Italian aircraft carrier
4
No, Banksy hasn't been arrested, nor his identity revealed No, Banksy hasn't been arrested, nor his identity revealed
5
British Reaper UAVs join the fight against Islamic State British Reaper UAVs join the fight against Islamic State
Trending News
Around the Web
x
Feedback