Home Affordable Unemployment Program (UP)

This is very similar to a forbearance agreement.  Actually, the terms of this program are very similar to the Fannie Mae and Freddie Mac forbearance agreements discussed here.  The UP is unavailable on Fannie Mae and Freddie Mac loans.

This program allows for either payments to be reduced to 31% of your income or for the suspension of payments altogether.  As the name would suggest, unemployment is a requirement for qualification.  Upon completion of the program, you can be considered for a HAMP modification should it be available and you meet the requirements of HAMP.

The eligibility requirements of the Home Affordable Unemployment Program are:

  • You are unemployed and eligible for unemployment benefits;
  • You occupy the house as your primary residence;
  • You have not previously received a HAMP Modification;
  • You obtained your mortgage on or before January 1, 2009; and
  • You owe up to $729,750 on your home.

 (available at http://www.makinghomeaffordable.gov/programs/unemployed-help/Pages/up.aspx).

Please see the Warnings about Loan Modifications page.  Applying for a government program will not automatically stop a foreclosure.

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