Primary tabs
Location
New York Times: A Reprieve for Unemployed Borrowers
The campaign goal: “Every American lives in safe, decent, affordable and energy efficient housing on fair terms!” Join a community that is well informed on housing issues in the news. See the links below and Get Empowered Now.
and ’s recent extension of forbearance programs will give short-term aid to unemployed homeowners, but housing counselors warn that these borrowers will need to look at longer-term solutions.
In a forbearance program, a lender agrees not to foreclose on a property and gives a borrower several months’ grace from or reduction in monthly payments. The programs work best for temporary setbacks, like job loss, health problems or natural disasters.
Along with the reprieve come drawbacks — most significantly a larger total debt from the smaller payments. “Your unpaid balance keeps getting higher and higher and higher,” said Jennifer Murphy, the director of lender-servicer relations for the nonprofit Center for Neighborhoods.
Click Here to read the full story.
