A new mortgage assistance program was created by Associated Bank that will help unemployed mortgage customers continue to reside in their homes. Associated Bank will lower or even postpone mortgage payments that are due from someone who is unemployed. They will also consider deferring the homeowners monthly mortgage payment for a period of up to one year. This program is available only to those customers whose mortgages are owned by Associated Bank, and this is a large number of those who used this lender. Almost 30 percent of all homeowners who make their monthly mortgage payments to Associated Bank may be eligible for help from this mortgage assistance program.
What is a mortgage payment deferral? A payment deferral will allow the homeowner to postpone, or defer, their monthly interest payments and principal until the end of the outstanding loan, which is the maturity date. Once the homeowners find new employment, then Associated Bank will provide those with additional options and assistance. Other programs that may be available to help them could include further recalculating their remaining payments to include the amount of the mortgage that was deferred and also accumulated interest that may have happened over the remaining life of the loan. Or the banks may decide to refinance the balance of the mortgage into a new loan at a lower and more affordable interest rate or the payment terms may be extended.
In addition, Associated Bank has a strong relationship and also services mortgages that have been sold to both Freddie Mac and Fannie Mae, which of course have their own mortgage mitigation rules and criteria. You can also learn about their assistance programs.
Overall, this program is intended to help homeowners who are in trouble and those who are not covered by the federal government’s Homeowner Affordability and Stability Plan. In order for a homeowner to qualify for the program, homeowners must have their first mortgage on their primary residence with Associated Bank, they must also be receiving state unemployment benefits and they also need to be actively seeking employment and a new job.
Another program that unemployed homeowners can consider is the governments Home Affordable Unemployment Program. Click here to learn more. This is a federal program that works in conjunction with HAMP.
In addition, once borrowers have found new employment, Associated Bank may then still decide to negotiate and/or modify the terms of the home mortgage. They will consider taking such actions as offering a refinancing, adjusting interest rates, or providing some form of other loan modifications that can help the borrower stay in his or her residence over the long term. Call the bank at 800-236-8866.
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