July 19, 2010 by 6 Comments

Unlike the situation 80 years ago, unemployment now takes place in full color.

The Federal Government has rolled out a new program, the Home Affordable Unemployment Program (HAUP) that aims to help unemployed borrowers who are struggling with their mortgage payments stay in their homes and avoid foreclosure.  The program would provide a mortgage forbearance to qualified borrowers.  During the forbearance period the mortgage would be reduced or eliminated.

In order to be eligible for HAUP a borrower must meet certain criteria:

  • the property in question must be 1 to 4 units
  • the mortgage must be on the borrower’s principal residence
  • the unpaid balance of the mortgage cannot be more than $729,750
  • the mortgage has not been modified under HAMP
  • the mortgage is delinquent or will be delinquent
  • the borrowers must be unemployed

For a complete list of details on HAUP eligibility, and participating servicers, check makinghomeaffordable.gov.

The HAUP forbearance period is a minimum of three months, and can be longer depending upon your loan servicers.  During the forebearance, a borrower’s mortgage payment cannot be more than 31 percent of their gross monthly income.

Unemployment dropped from 9.7 percent to 9.5 percent in June, however much of the decline can be attributed not to an increase in jobs but a decrease in the number of people receiving unemployment benefits or frustrated job-seekers ceasing their job searches.  Further, the U-6 broader measure of unemployment that includes underemployed and marginally attached workers was at 16.5 percent in June.  Unemployment is still the number one issue facing the economy and the housing recovery.

Do you plan on utilizing HAUP?  Let us know in the comments section below.


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6 Comments

  • sbmaverik@hotmail.com' Frank says:

    Funny how all of these programs are set up to help people who let things go to crap, as in you must be delinquent, as opposed to trying to hold off delinquency.

    I theorize these programs are designed this way as to capture people as they just begin to feel they actually can not take care of themselves. In this way, the government can grow the portion of the population that becomes convinced that it is they (the government) that are the only ones that can take care of them (the people). Why else would these programs be set up to ignore those who would like to be responsible and not let things get so far as to be delinquent?

  • jackcgraham@hotmail.com' Jack says:

    Why is it they never mention what happens to the portion of your loan payment that is being set aside during participation in HAUP? That unpaid part of your mortgage payment is held aside drawing late fees and interest which must be paid in full as a balloon payment once you exit the program…otherwise they will foreclose on your property.

  • donwoolf@sti.net' Don Woolf says:

    Chase’s “Unemployment Plan” of ‘assistance’

    They caught me with this. Almost a year on unemployment , until it ran out, we were shocked to get a bill for the other two thirds of the normal payment due…NOW… when our
    checks ran out. Am not upside down, one payment late when it began. Nothing in writing or mention of the bank’s plan for us. We had a perfect payment record. These people are criminal.

  • trina.joseph12@gmail.com' TJ says:

    kinda figured they would throw the unpaid balance at end and ruin your credit. We jusst got approved, but i am leary. Too good to be true.
    We had a perfect payment record for 12 years.

  • oshylina@yahoo.com' Olga says:

    Don’t take this program. Between my previous job and my current job i had couple of month of unemployment. After consulting with my mortgage company they offered me a new program called Home Affordable Unemployment Program (HAUP). After two month of being on this program i returned two my normal payments. I never was late on my mortgage payments or never payed a late fee. Now after 2 years from HAUP I founded my credit history is absolutely destroyed and I can’t to have a loan approval for new house (my old house is under contract)

  • margretmilligan@gmail.com' Margret says:

    Why people still use to read news papers when in this technological globe everything is presented
    on web?

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