Today the Making Homes Affordable Program offered a training on the Home Affordable Unemployment Program. This program is meant to extend relief to people in default who are also without work.
Here are some bullet points to keep in mind about the program:
- At least one person on the note (not the mortgage) must be unemployed to be eligible.
- If eligible, borrowers are entered into a forbearance period where they pay a determined percentage of the mortgage for a certain amount of months (typically in HAMP this is a 3 month period but under UP it's an extended period of time determined during the evaluation process).
- This is a short term fix, not a long term alternative, after the forbearance period borrower is evaluated to determine if he/she is able to transition to HAMP or HAFA resolutions.
- Borrower does not qualify if over 12 months delinquent on mortgage.
- Clients who have previously been entered into a HAMP modification or trial period but defaulted are eligible.
Remember, if you are unemployed there is hope. Utilize the Unemployment Program while you try to find work. Good luck and happy 2013.
This blog was written by our friend Laura Palermo who works in modifying mortgages at Lieb at Law, P.C.