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New Help for Unemployed Homeowners

The Obama administration is working to help out-of-work homeowners stay in their homes. In addition to encouraging Americans keep their homes and manage their monthly bills, from house insurance to water and electricity, the government is attempting to help the housing market (and the economy), through this program, by preventing the price declines associated with foreclosures.

What Does The Program Do?

Beginning August 1st, the Federal Housing Administration (FHA) will be extending the time period that unemployed homeowners can skip mortgage payments before the foreclosure process begins. Right now, the grace period is only three months.

Starting August 1st, this will be extended to 12 months. This means that if you are currently out of work you will be able to go without making a mortgage payment for 12 months before your lender could begin the foreclosure process.

Who Is Eligible?

The one “catch” with this program is that is only applicable to homeowners whose loans are backed by the Federal Housing Administration. Approximately 14% of all mortgages (and 25% of new mortgages) are backed by the FHA.

Homeowners who are participating in the Home Affordable Modification Program would also be eligible for this extended grace period.

What About Other Homeowners?

The Obama administration would like other mortgage lenders, specifically Fannie Mae and Freddie Mac, to participate in this new program. So far, however, they have decided not to join. Note: Fannie Mae and Freddie Mac back 90% of new mortgages in the United States.

Broader Changes to Mortgage Rules

In addition to the changes mentioned, additional housing rules will be taking place starting October 1st. These rules will be adopted by Fannie Mae and Freddie Mac, and therefore applicable to many more Americans. If any of the following conditions occur, you will be able to delay payment for up to one year:

  • If your home has been destroyed
  • If you or one of your dependents has a long-term illness or disability
  • If the borrower has passed away and the property is in probate

 

 

Other Recent Updates

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How Many Weeks of Benefits?

The New Job Search

 

 

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Tags: , | Category: News, Unemployment

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How Many Weeks of Unemployment Benefits?

While unemployment is an important national issue, the amount of benefits you can receive really depends on your state.

With the current tiers of extensions, 60 weeks is the minimum total number of weeks you can collect, while nearly half of all states grant up to 99 weeks of total benefits.

The graph below (compiled by the Center on Budget and Policy Priorities) outlines the number of weeks available across the country. The information is current as of June 5th, 2011.

 

 

Note: The total number of weeks includes both EUC and EB. In Missouri, 99 weeks are available if you initially filed prior to April 13, 2011. For those who filed after this date, 76 weeks are available.

Future Extensions

As the law currently stands, unemployment extensions are available for Americans filing for benefits through the end of 2011. Last week, President Obama mentioned in a press conference that he may consider a further extension into 2012. This will require approval from Congress, and there should be news on this in coming weeks.

 

 

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Job Creation: What is Washington Doing?

Job Creation: What is Washington Doing?

Washington is in the process of taking steps to help encourage job growth throughout the country. This week, we highlight the debate taking place over the Trade Adjustment Assistance (TAA) program.

 

What is Trade Adjustment Assistance?

According to the Deparment of Labor, the Trade Adjustment Assitance program “was created to provide benefits and services to workers who become unemployed due the impact of international trade.”

Essentially, if your job was impacted because of foreign imports or because of a shift in production outside of the United States, Trade Adjustment Assistance provides additional benefits, specifically:

  • additional cash payments (up to 156 weeks) if you are enrolled in training (for new or additional skills)
  • re-employment assistance
  • job search allowances
  • relocation allowances

The benefits available under TAA were expanded greatly under the Recovery Act in 2009. In February of this year, however, the expansions to Trade Adjustment Assistance program expired.

 

What is the Current Debate?

Democrats want to reinstate the provisions of the TAA that were put in place as of 2009.

Republicans are concerned about the cost of the program, which would be approximately $7.2 billion over 10 years, and would be funded by the government taking on more debt.

President Obama is looking to Congress to renew the Trade Adjustment Assistance program. At the same time, free-trade agreements with South Korea, Colombia, and Panama are also being discussed.

Both Republicans and Democrats support the free trade agreements. The President is considering passing the free-trade agreements only if Congress agrees to bring back the TAA at 2009 levels.

 

What Does This Mean for You?

If Trade Adjustment Assistance is included with the free trade deals …

  • You may be able to receive additional benefits and training — if your previous job was impacted by a shift in production to another country that has a free trade agreement with the U.S. Alternatively, you may also be eligible if your job was directly impacted by imports.
  • We will provide more details as these discussions unfold.

 

More Programs

In the coming weeks, we will highlight additional programs that Washington is undertaking to help create job growth.

Also, we continue to follow all legislation related to unemployment benefits and extensions, and will keep you informed as soon as new information becomes available.

 

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