Hope For Your Home If You Are Unemployed

Job loss is not the end nor does it have to be the end of your home. Although refinancing a home when the borrower is unemployed is practically impossible, U.S. Rep Barney Frank, a Massachusetts Democrat who chairs the House Financial Services Committee, is proposing to spend $2 billion to help.

The proposal would revive a 1975 program that lends money to the unemployed so they don't lose their homes.

"There has to be a reasonable likelihood that the homeowner will be able to resume making the mortgage payment without state help,'' said Brian A. Hudson Sr., the chief executive of the Pennsylvania Housing Finance Agency, in a prepared statement, noting that the assistance is temporary.

Frank's proposal would also earmark $1 billion to build and preserve affordable housing, $1.5 billion to redevelop foreclosed and abandoned homes, and $2 billion to protect tenants in apartment buildings when the owner is facing foreclosure.

Stay tuned for updates on if this proposal is passed.

Source: The Boston Globe, Jenifer B. McKim (07/09/2010)

Posted Friday Jul 10