Late in 2008, Congress created a panel to oversee the $700 billion TARP program. The panel warned the Obama Administration that the HAMP program (provided under the TARP initiative) would not help the huge numbers of homeowners who would stand to lose their homes because of the growing unemployment problem.
The Congressional panel warned that as many as 10 million homeowners might risk foreclosure just due to job loss. But through the Making Home Affordable Program, about $40 billion in TARP funding can be used to help unemployed homeowners remain in their homes.
The primary factor in determining eligibility is the amount and duration of the unemployment benefits. The Department of Labor has created a tool whereby an applicant’s total (estimated) unemployment benefits can be calculated. If the benefits are sufficient in both amount and duration, an unemployed homeowner could qualify for a loan modification. In order for an unemployed applicant to qualify, they must have a minimum of nine months of unemployment benefits remaining. The number of months benefits will be paid would be determined by the econnomic conditions in the particular state.
For benefit validation, information contained in a state’s unemployment benefits notice can be used. In addition, the Labor Department’s (DOL) calculator can help determine both the total number of weeks as well as the total amount of unemployment benefits one could be eligible for. There are three unemployment benefit programs available, each with a corresponding number of benefit weeks attached to it, so it is important to know the scope of eligibility before proceeding. However there is hope of remaining in your home even in the event you lose your job.
To see if you meet the requirements under the government’s modification program go here. Watch these 2 videos for further clarification about HAMP.
If you want to check the unemployment benefits estimator tool developed by DOL, check here.
Without a doubt, this is something that will not sit well with lenders. But you should be aware that the Federal Government included the unemployment contingency in their planning. So, fight to see if you can get it. A loan modification is not going to be a piece of cake regardless of your situation.
To stay completely up-to-date on all the pending mortgage changes, to see how they will affect you, and get news about interest rates and programs, just read my weekly updates - Click for free email alerts.
