The Home Affordable Unemployment Program (HAUP) (aka UP) was another program put in place offered by participating lenders/servicers to offer unemployed homeowners struggling to make monthly mortgage payments.
The HAUP program is combined with a forbearance agreement to temporarily reduce or suspend monthly mortgage payments while the homeowner is seeking employment. The forbearance period must meet a minimum of 3 months and can be extended at the sole discretion of the lender/servicer in compliance with the investor guidelines. Read more
To qualify for Home Affordable Unemployment Program – HAUP:
- The homeowner must be unemployed and eligible for unemployment benefits
- The property must be owner-occupied
- The program can be extended up to a maximum of 12 months while the homeowner is looking for employment.
- The mortgage must be a first lien originating prior to or on January 1, 2009
- The unpaid principal loan balance must be equal to or less than $625,500for one unit. (Ref . the link here for High Cost Area (HCA) loan limits for 1-4 units
- You must have been delinquent 3 consecutive months or less on mortgage payments
- Your mortgage payments are greater than 31% of your gross monthly income. (However, payments could be less than 31%, at the lender/servicers discretion).
Upon re-employment or 30 days prior to UP expiration of the forbearance period, homeowners will be evaluated for the HAMP loan.
Most lenders/servicers meeting investor guidelines will require that the homeowner’s unemployment benefits are currently active prior to approving the HAUP loan.