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Help is Here for Unemployed Homeowners

July 31, 2010

The unemployment rate in Illinois is higher than the national average. If you are part of that statistic and own a home or other Chicago real estate, a new mortgage modification program could help you out.

The Home Affordable Unemployment Program (UP), which starts August 1, requires participating lenders to lower or suspend mortgage payments for eligible unemployed borrowers.

During the UP forbearance period, your monthly mortgage payment will be reduced to no more than 31 percent of your gross monthly household income, including unemployment benefits.

On the other hand, you won’t qualify for the UP program if your mortgage, taxes, insurance and homeowners’ association fee is equal to or less than 31 percent of your gross monthly household income, including those unemployment benefits.

The minimum length of forbearance is three months, but it can be extended by your lender.

The program, which would end once the borrower gets a job, is available to eligible homeowners through participating Home Affordable Modification Program (HAMP) servicers.

To understand the eligibility criteria, check out www.makinghomeaffordable.gov.

Categories: Economy

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