Home Affordable Unemployment Program (UP)

The Home Affordable Unemployment Program (UP) provides homeowners a forbearance of their first mortgage, which is a temporary period of time during which your regular monthly mortgage payment is reduced or suspended. The UP forbearance period is for twelve months as of July 2011.  This program is available to eligible unemployed homeowners through participating HAMP servicers.

Participating servicers are required to offer an UP forbearance plan if the homeowner meets the eligibility criteria:

1. The mortgage loan is secured by the borrower's principal residence;
2. The mortgage loan is a first lien mortgage originated before January 1, 2009;
3. You have an unpaid principal balance on the mortgage loan that is equal to or less than:
• 1 Unit: $729,750
• 2 Units: $934,200
• 3 Units: $1,129,250
• 4 Units: $1,403,400
4. The mortgage loan is no more than 3 months delinquent or default is imminent;
5. The mortgage loan has not been previously modified under HAMP, and you have not previously received an UP forbearance period;
6. Be unemployed when you request consideration for UP, and be able to document that you will receive unemployment benefits in the month of the forbearance period effective date. 

Your servicer may also require you to have received unemployment benefits for up to three months before your forbearance period can begin.

During the UP forbearance period, your monthly mortgage payment must be reduced to no more than 31 percent of your gross monthly household income.  You must make these payments in a timely manner or you will jeopardize your eligibility. 

If you get a new job during the forbearance period, you will need to inform your servicer.  Otherwise, 30 days before your forbearance period expires, your servicer will provide you with an Initial Package so that you can request a modification through the Home Affordable Modification Program (HAMP).