Lose Home ImageUnfortunately, a foreclosure is often the result when people lose their job unexpectedly.

Because the mortgage payment is such a large amount to come up with every month, it can be difficult to choose between daily bills, food and your house payment.

However, there are programs specifically put in place to help homeowners in this situation.

By applying for these, you may be unable to keep a stable home for your family until you’re able to find another source of employment.

FHA Special Forbearance Program

The FHA recognizes that sometimes people run into financial problems. For this reason, they have a special program known as the Special Forbearance Program.

The main objective is to encourage loan service agencies to extend the regular forbearance period up to a full year if the homeowner is unemployed.

While previously there were a few more steps to qualifying for this assistance, these have since been removed with the uptick in unemployment across the nation.

Home Affordable Unemployment Program

There is also a chance for homeowners to get their monthly payment reduced or suspended for a year. If you qualify for this help, then your unemployment will allow you to get a payment reduction while you look for another job.

This is not a loan or a put-off of regular payments, but rather a budgeting tool to help you manage your funds. For those that are still making it each month, this lower payment will be greatly appreciated.

Emergency Homeowners’ Loan Program

The final option is not available everywhere—only in a few select states. It is an emergency loan program, known as EHLP (Emergency Homeowners’ Loan Program.)

If this is available in your area, and if you qualify, it can help you get the funds you need to make the mortgage payments on time. Even though it’s a loan that needs to be paid back, it’s better than losing everything you’ve worked hard to buy.

Even though you may have lost your job, do not automatically assume you have to lose your home as well. This is not an uncommon situation and there are programs ready and willing to assist you.

The important thing to remember is that real estate goes up and down, and so does the economy. If you work together with your lender and keep them abreast of any changes, you’ll have a higher chance of avoiding foreclosure and staying in your home.

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This is filed under Foreclosures.

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