Unemployed Homeowners Get Federal Help

Washington, DC, July 8, 2011 -- The government is making it easier for unemployed homeowners to stay in their homes.

Starting Aug. 1, the Federal Housing Administration will extend the period for unemployed homeowners to miss mortgage payments to a full year from three or four months. The extended grace period only applies to FHA-backed loans.

That will allow qualified homeowners to go without making a monthly payment for 12 months before the foreclosure process begins.

FHA-backed loans are usually given to low- and middle-income borrowers and represent about 14% of all active mortgages and roughly 25% of new mortgages.