As unemployment benefits expire, many people are aksing about a “Tier 5″ extension.
Background
If implemented, a Tier 5 would add additional weeks of unemployment benefits. To date, the previous extensions passed by Congress this year have only extended eligibility for existing tiers, enabling you to receive up to a maximum of 99 weeks in most states. The 2010 extensions have not added any additional weeks to the total available.
Free Financial Help
Take advantage of an opportunity to cut your debt. Imagine — No more debt!
If you are unemployed, you may be eligible to lower your bills. Find out how.
Many people have already exhausted their 99 weeks (or their state maximium), but are in need of further assistance.
Tier 5 Extension – New Proposal Introduced
Michigan Senator Debbie Stabenow introduced new legislation during the first week of August that formally brings the Tier 5 discussion in front of Congress. Here are the highlights of the propsal:
- The bill would add an additional 20 weeks of benefits for people who have had their benefits expire.
- The proposal would require that the unemployment rate in your state must at least 7.5% in order to qualify.
- Also included in the proposal are tax breaks for business owners who hire
- The new legislation has not yet been voted upon.
What’s Next?
- Members of Congress are on recess through September 12th.
- The Senate will next address the proposal upon their return in September.
On August 11, 2010, the Obama Administration approved plans for an additional $3 billion in foreclosure-prevention funding for unemployed homeowers.
How Will It Work?
To be eligibile for the program, you must meet the following requirements.
- Be at least three months behind in your payments and have a reasonable likelihood of being able to resume repayment of your mortgage payments and related housing expenses within two years.
- Have a mortgage property that is your principal residence. You may not own a second home.
- Be able to demonstrate a good payment record before your reduction of income.
States Receiving Help
To be eligible, your state must have experienced an unemployment rate higher than the national average over the last 12 months.
Free Credit Scores
Available to Ny Residents
Get Yours Today
- Alabama
- California
- Florida
- Georgia
- Illinois
- Indiana
- Kentucky
- Michigan
- Mississippi
Affordable Health Insurance
Did You Get Your Free Quote Yet?
Cheaper Than COBRA — You Can Find Coverage For Under $40 / Month
- Nevada
- New Jersey
- North Carolina
- Ohio
- Oregon
- Rhode Island
- South Carolina
- Tennessee
- Washington DC
More Details
According to the Department of Housing and Urban Development, the program will be implemented through various state and non-profit entities, which will offer “a declining balance, deferred payment “bridge loan” (zero percent interest, non-recourse, subordinate loan) for up to $50,000.”
Eligible borrowers will be able to use the funds for mortgage payments, mortgage insurance, taxes, and hazard insurance for up to 24 months.
Do you know your credit score?
Did you know that over 50% of employers look at your credit score when you apply for a job? Get more information and find out your credit score for free today.
3 Out Of 4 Cities Saw A Rise In Unemployment
Each month, the Labor Department measures the unemployment rate in 374 metro areas throughout the country. About a month later, statistics are released.
In June 2010, the unemployment rate rose in 291 out of the 374 areas, according to data released on July 28th, 2010. This increase reflects a change from what we saw in the previous three months, when the unemployment rate was actually going down.
While the statistics are interesting for economists, whether the unemployment rate went up or down is of less importance to people who are out of work. The real question millions keep asking themselves is “Where can I find a job?”
The government is providing some assistance with the latest extension of EUC eligibility through November, but thousands of Americans are still waiting to hear from Congress about the possibility of a Tier 5 extension.