One of the nation's big banks has a solution to mortgage default that comes about because of sudden unemployment or underemployment: Job hunting help for mortgage holders!
The Chicago Tribune reports Fifth Third Bank has a pilot program where it teams up with employment firm NextJob, Inc., to assist mortgage borrowers who have missed two consecutive mortgage payments because of a change in their job status.
NextJob offers program participants 16 weeks of online job hunting help, resume assistance, and one-on-one phone coaching.
The cost to Fifth Third Bank for the program? A reported $1,500 per participant. Contrast that with the up to $60,000 the bank can lose everytime it forecloses on a mortgage!
I love that the free market has come up with a solution to a problem. Is this the solution that's going to stick? Who knows! But anything is a step in the right direction...