Question

The client and her housing counselor request an FHA Special Forbearance-Unemployment Agreement from the client's servicer. Which is a key feature of this type of agreement?

A- The agreement will expire 60 days after she becomes employed.
B- The client will have to show surplus income over the minimum limit.
C- It will temporarily suspend and/or reduce the client's monthly mortgage payment.
D- The client will have to successfully complete a Trial Payment Plan.

Answer 1

The FHA Special Forbearance-Unemployment Agreement helps by temporarily suspending or reducing monthly mortgage payments for the unemployed, providing essential relief until they can find employment.

Step-by-step explanation:

The key feature of an FHA Special Forbearance-Unemployment Agreement is C- It will temporarily suspend and/or reduce the client's monthly mortgage payment. This type of agreement is designed to help individuals who are currently unemployed by providing them with temporary relief from mortgage payments. The intent is to provide borrowers with breathing room until they regain employment and are able to resume their regular mortgage payments without falling into foreclosure.

Unemployment insurance usually provides financial support for a limited period of time, which in many states is up to six months. Government programs may also offer assistance for job search or retraining to help unemployed individuals reenter the workforce more quickly. The duration and amount of support can influence an individual's incentive to find new employment.