Forbearance for the unemployed

Shared by Sara on Mon Oct 05, 2009 2:04 am
As unemployment levels have reached its peak, the Federal Deposit Insurance Corporation (FDIC) has urged that the lenders should offer forbearance to the borrowers who are unemployed. This will help the borrowers to get a temporary respite from paying the mortgage dues. FDIC has requested the lenders to reduce loan payments to an "affordable level" for the borrowers who are delinquent on their mortgage payment due to job losses or salary reductions. Source: http://www.nytimes.com/2009/10/04/realestate/04mort.html

Community Members Opinion

savior70

Joined: 25 Mar 2009

Posts: 1416
Location: Florida

167.66 Dollars($)

Posted: Mon Oct 05, 2009 6:19 am Post subject:

Hi, It's good to hear that FDIC is encouraging banks to offer forbearance programs to borrowers who have lost their job, in an attempt to curb the growing number of foreclosure. The economic downturn has left many people jobless and this has been one of the key reasons for the rise in no. of defaults and foreclosures. Many of the posters in this forum rue how they are facing difficulty in making mortgage payments due to a recent layoff or a cut in their salaries. There are thousands of others who are stuck in the same situation. If the banks do start offering the forbearance programs to the unemployed, it'd surly be a boon for many such homeowners. They will at least get a temporary respite till the time they manage to get a new job.

sunnyca2009

Joined: 04 Aug 2009

Posts: 1737

36.13 Dollars($)

Posted: Fri Oct 09, 2009 5:28 pm Post subject:

This is really a good step. Insted of goign thoruh the loan modification process, they can make it simple and lower the payments for some people immediately

Samantha

Joined: 16 Sep 2005

Community Mentor
Posts: 1600
Location: MASSACHUSETTS

149.06 Dollars($)

Posted: Sat Oct 10, 2009 6:23 am Post subject:

It's a good move by the FDIC to protect borrowers from losing their homes. Even though several lenders have been allowing borrowers to follow a trial repayment plan after a loan modification offer is accepted by both parties, yet the plan introduced by the FDIC will make it (trial repayment plan) a regular practice with many. Considering the fact that unemployment rate is still high, the FDIC plan is likely to give jobless borrowers some time to look out for another source of income so as to fulfill their financial obligations. But the plan is intended for those borrowers who have defaulted on their loans because of job loss or salary cut. So, those who are at imminent risk of default will have to look out for some other solutions to tackle their mortgage debt. Samantha _________________ Know how to compare lenders with mortgage booklet


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