(04/22/2010) Earlier this month, Bank of America announced they are considering a program aimed at borrowers who have become involuntarily unemployed. Flagstar also introduced a mortgage insurance program this month. When shopping for a home, it is wise to find a low rate mortgage so that your monthly payment is as manageable as possible, even in the event of an unexpected job loss.
Bank of America's proposed program, which is “still pending regulatory approval” according to HousingWire.com, could possibly defer or forgive up to nine months of mortgage payments. According to a spokesperson, it is very likely these uncollected payments would be included in the resulting permanent loan modification at the end of the nine month period.
If the borrower secures a job during the nine months, Bank of America would simply modify the loan using its own program or using the Home Affordable Modification Program (HAMP). In the event that the borrower cannot find employment within nine months, the financial institution will offer the homeowner a minimum $2,000 “cash-for-keys” check as part of a signed deed-in-lieu foreclosure contract.
Additionally, Flagstar Bank has also launched a mortgage insurance program aimed at unemployed borrowers earlier this month. The program covers mortgage payments up to $2,000 per month for up to 6 months in the event that the homeowner loses his or her job, according to the bank's website.
One way to avoid having to miss payments is to finance your property using a low rate mortgage. By finding a mortgage with a low interest rate, your resulting monthly payment will be more manageable than it would be with a higher rate mortgage. The best way to find these low rates is by looking at online rate table, such as those found on ERATE.com.
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