Economic Stimulus Programs
More Money for Unemployed Workers; Deals on Mortgages
Right now the American economy is possibly more buckled than it has been since The Great Depression. In response, President Obama has pledged hard-hitting and aggressive stimulus initiatives purposely architected to provide immediate relief.
American Recovery and Reinvestment Act—Extra Unemployment Benefits
The American Recovery and Reinvestment Act signed into law on February 17, 2009 has included a clause that gives more money to eligible unemployment recipients. The Federal Additional Compensation (FAC) program approves a weekly benefits increase of $25—or 100 extra bucks a month. That’s a family grocery run, utility bill, a cut of the rent or the mortgage. AND it’s available across all states as of February 22.
However, be advised that this additional compensation does require your state unemployment system to adjust to the modification. Considering that many state systems are already beleaguered means these vital extra relief dollars could be delayed. In the case that your weekly benefits pay doesn’t immediately reflect this FAC, you can check with your state unemployment office for more information, but if your state does fall behind in FAC payments you will receive them in retroactive benefits.
To be eligible to receive the FAC benefits you must also be eligible for unemployment compensation benefits with your state government. You must also remain eligible for continued unemployment benefits—available for work, actively seeking work, able to work and otherwise participating according to your state unemployment insurance benefits program rules.
The FAC UI payments are part of the Federal government’s current stimulus initiative and are not state-funded, but federal-funded.
The American Recovery and Reinvestment Act also includes a federal COBRA subsidy.
The Homeowners Affordability and Stability Plan
Homeowners Affordability and Stability Plan proposes to provide assistance to homeowners struggling as a result of multi-pronged market collisions including, the mortgage industry melt-down, the ensuing credit crisis, and the massive unemployment rates. Not only are millions of Americans losing their homes with little they can do about it, but these massive foreclosures don’t bode well for the communities in which they are located.
The Homeowners Affordability and Stability Plan would make homeowners with conforming mortgages eligible to refinance; modified in-good-faith monthly mortgage payments for those homeowners “at risk” of defaulting on their mortgages for a variety of economic reasons, and incentive payments to others mortgage holders able to commit long-term to regular payment maintenance.
Recommended Resources:
American Recovery and Reinvestment Act government site
Homeowners’ Affordability and Stability Plan
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