The unemployment rate is still high and lot of homeowners are out there who needs help to avoid foreclosure. Our government realized that they have rolled out many programs to help homeowners through difficult times like HAMP (Home Affordable Modification Program) and HAFA (Home Affordable Foreclosure Alternatives).
With home owners unemployed one major concern is that of the ability to make mortgage payments. To answer this call, the government has implemented a new program called HAUP (Home Affordable Unemployment Program) a supplement to the HAMP program.
By August 1, all mortgage servicers currently participating in the Making Home Affordable Program will offer extra help for homeowners struggling to make their monthly mortgage payments because of unemployment.
This program will offer homeowners a forbearance period to temporarily reduce or suspend their monthly mortgage payments while they seek re-employment. The minimum forbearance period is 3 months, although a mortgage servicer may extend it depending on the investor and regulator guidelines.
If a homeowner becomes re-employed in that time, the forbearance period will end and the homeowner will be evaluated for a mortgage modification under the Making Home Affordable Program.
During the forbearance period, a homeowner’s monthly mortgage payment must be reduced to no more than 31 percent (or less) of their gross monthly income. The servicer can decide to temporarily suspend payments in full. The payment amount and due dates will be decided by the servicer depending on investor and regulator guidelines.
The homeowner will qualify if their 1st lien originated on or before Jan1, 2009 and if that’s their primary residence. If you have previously approved or denied for HAMP then you will not qualify for this program. To apply for this new program, you need to be unemployed and receiving unemployment benefits.
Check with your lender for more information on this new Unemployment Program to help you to avoid foreclosure. I hope this article will help you to move towards the right direction. If you have any questions or need assistance in short sale then please call me at 510-366-9405 or email me.
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