What is the Home Affordable Unemployment Program (UP)?
A homeowner who is currently receiving unemployment benefits may be eligible for either reduced mortgage payments or a suspension of mortgage payments for up to three months while they are seeking new employment.
- Homeowner must be eligible for unemployment benefits
- Must be owner occupant
- Must have obtained mortgage before January 1, 2009
- Must not have previously received a UP forbearance or Home Affordable Modification Program (HAMP) modification
- Must make request before missing three payments
- Homeowners must contact their mortgage servicer to see if they are eligible. There are over 100 participating HAMP servicers.
- Fannie Mae and Freddie Mac loans are not eligible for UP, but they do have other similar programs available.
- Under UP, homeowners may be required to make a partial payment not to exceed 31% of their monthly gross income.
- Homeowners may be reevaluated for HAMP at the end of the forbearance plan.
- Effective dates – August 1, 2010 to December 31, 2012.
*Above are guidelines, subject to change at any time.
If you have any questions about this process, please contact us.