Some circumstances which cause financial hardship are, by nature, temporary and predictable. A job layoff or temporary unemployment due to a curable medical condition are examples of circumstances which will clearly come and go, and the homeowner will be re–employed and be able to resume making their mortgage payments. The loss of a job usually creates a longer term problem; however, the homeowner’s job skills, training, job history, efforts at retraining, etc., are all relevant factors which the Agency will consider in determining whether there is a reasonable prospect of the homeowner being able to resume full mortgage payments within 24/36 months. If a person demonstrates a good employment history, a good credit history while employed, employable skills or efforts toward retraining, and an active search for employment, they will likely meet the reasonable prospect issue.
On the other hand, a person who has mortgaged their home to the limit, whose spouse dies without life insurance, who has no employable skills with no plans of entering into an employment training program, or who has a medical condition limiting their employment prospects, probably has little prospect of resuming their mortgage payments within 24/36 months and would likely not be found eligible.
It is extremely important for the homeowner to do a complete self evaluation of their job history, job skills, and potential for securing future employment in order to present an accurate picture of whether or not there is a reasonable prospect of being able to resume mortgage payments within the required timeframe.