The Home Affordable Unemployment Program (UP) takes effect July 1, 2010, offering eligible unemployed borrowers an option to temporarily reduce or suspend mortgage payments for a minimum of three months. Applicants must qualify for the Home Affordable Modification Program (HAMP), currently receive unemployment benefits, and must request the option before missing three monthly payments. Homeowners, previously determined to be ineligible for a HAMP modification, may still request the UP plan if they meet the other requirements. The UP plan lasts a minimum of three months or until the homeowners gain employment, whichever is less. Servicers can extend this period according to investor or regulatory guidelines. UP plans are reevaluated 30 days prior to the expiration date or reemployment, whichever occurs first. Eligible loans include first lien mortgage loans that are not owned by Fannie Mae or Freddie Mac or insured or guaranteed by the Federal Housing Administration (FHA).
Tisha Black Chernine, Esq.