Assistance for Unemployed Borrowers

If you are feeling like you have lost all hope of avoiding foreclosure because you are unemployed, there is hope. Programs are available which can assist unemployed homeowners. Even if you do not qualify for any of the MHA Making Home Affordable programs like the one listed below, statistics available at (, there might be other ways to qualify for assistance.

Assistance for Unemployed Program Details:

Forbearance Plan Eligibility

To qualify, a borrower must meet the Home Affordable Modification Program (HAMP) eligibility criteria, as well as:

  • be unemployed at the time of the request;
  • be entitled to receive unemployment benefits in the month of the UP forbearance plan effective date (servicers have discretion and may require a borrower to have received unemployment benefits for up to three months before commencement of the forbearance plan); and
  • request an UP forbearance plan before they become seriously delinquent (before they miss three monthly mortgage payments).
  • Forbearance Plan Evaluation

    Servicers must follow the following requirements when evaluating a borrower for an UP forbearance plan:

  • Unemployed borrowers who request assistance for HAMP must first be evaluated for an UP forbearance plan. If they qualify, they must be offered an UP forbearance plan before they can be considered for HAMP.
  • Borrowers currently in a HAMP trial period plan who become unemployed may receive an UP forbearance plan if they have missed less than three monthly payments as of the first payment due date of the HAMP trial period plan. If they do qualify, their existing HAMP trial period plan must be cancelled and the UP forbearance plan must begin immediately, without waiting until the borrower has received three months of unemployment benefits.
  • Borrowers previously determined to be ineligible for a HAMP modification may request an UP forbearance plan if they meet the eligibility requirements.
  • Borrowers in a permanent HAMP modification who become unemployed are not eligible for an UP forbearance plan.
  • Forbearance Plan Terms

  • Term must be three months or upon re-employment (whichever is less). Servicers may extend this period according to their investor/regulatory guidelines.
  • Monthly mortgage payment must be reduced to less than or equal to 31% of the borrower’s gross monthly household income and may be suspended in full.
  • The HAMP Transition

    Borrowers in an UP forbearance plan will be evaluated for HAMP at either reemployment or 30 days prior to the UP forbearance period expiration, whichever happens first.

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