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May 18th, 2010

HAUP: Home Affordable Unemployment Program



With a new Making Home Affordable program comes a new acronym: HAUP, the Home Affordable Unemployment Program.

Joining the ranks of HAMP, HARP, HASP, HAFA and 2MP, HAUP – which will begin on July 01, 2010 – is designed to provide relief to unemployed homeowners. HAUP (referred to as “UP”), “offers eligible unemployed borrowers a forbearance plan to temporarily reduce or suspend their mortgage payments.”

Here are the details from MakingHomeAffordable.com:

Forbearance Plan Eligibility:

A borrower must meet the Home Affordable Modification Program (HAMP) eligibility criteria as well as:

  • be unemployed when request is made;
  • be entitled to receive unemployment benefits in the month of the UP forbearance plan effective date (servicers have discretion to 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 (i.e., miss three monthly mortgage payments).

Forbearance Plan Evaluation:

Servicers must follow these 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 immediately begin 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 reemployment (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.

Transition to HAMP

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

For those with questions (after speaking with your servicer), you can talk with a HUD-approved housing counselor by calling 1-888-995-HOPE (4673).

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31 Responses to “HAUP: Home Affordable Unemployment Program”

  1. Tweets that mention HAUP: Home Affordable Unemployment Program | HSH Financial News Blog -- Topsy.com Says: May 18th, 2010 at 2:09 pm

    [...] This post was mentioned on Twitter by Jamie Smith Hopkins, HSH Associates. HSH Associates said: HAUP: Home Affordable Unemployment Program http://bit.ly/9oKoyH We have the details [...]

  2. Why I Network With People In Transition | Rich Days To Come Says: May 18th, 2010 at 2:53 pm

    [...] HAUP: Home Affordable Unemployment Program (hsh.com) [...]

  3. Angie Says: May 19th, 2010 at 1:14 am

    They arent helping any one. First they tell you that you dont make enough, then when you rent a room or something to help with income, they tell you that now you make too much! Its all a bunch of lies! They dont care to help any one but themselves.

  4. Tim Manni Says: May 19th, 2010 at 8:50 am


    We’ll see if these changes have a positive impact on the unemployed. Apparently, the changes alter the way unemployment income is accounted for. I still have a lot of reading up to do on these changes. We’ll be sure to update everyone as we learn more.

    Thanks for commenting Angie,

  5. troy Says: May 25th, 2010 at 8:18 pm

    i personally think that this program will be really helpful. Most of the times its us the customers who do not conform to the bank requirements!

  6. Tim Manni Says: May 27th, 2010 at 12:27 pm

    Hey Troy,

    Thanks for commenting!

  7. Wan Says: August 9th, 2010 at 10:02 am

    What do you do when your investor does not participated in this program??????

  8. Tim Manni Says: August 9th, 2010 at 3:33 pm


    I would look over the eligibility requirements here (http://makinghomeaffordable.gov/borrower-faqs.html#61) to see if you have a shot.

    Thanks for commenting,

  9. Vivian Anderson Says: November 18th, 2010 at 5:28 pm

    I recieved a home modification a year ago in March. I was permenatly laid off and I am collecting unemployment. Because I already got the HAMP I don’t qualify for the HAUP. The modification really didn’t help very much other than stop the forclosure. Why can’t I apply for the HAUP if I am unemployed? They don’t tell you that when you get the mod. that you can’t get another if your situation changes.

  10. Tim Manni Says: November 23rd, 2010 at 1:25 pm


    Unfortunately your HAUP denial makes sense to me (you did receive a HAMP mod not even a year ago).

    For more on the ins and outs of HAUP, follow this link:



  11. Debby Crouse Says: February 16th, 2011 at 3:09 pm

    I have been turned down by my mortgage company for a HAMP because I am on temporary lay off and my husband fell in November and broke his leg unfortunately for us hos employer did not carry work compensation so no disability payments. I juat got the note about the HAMP yesterday, appartently from what I read we won’t qualify for it eother becasue my husband cannot collect unemployment because he is not physically able to work (construction). So today I get a FED EX For HAFA and am jusy confused we are caught in the cracks and see no way of getting out so Now what

  12. Tim Manni Says: February 17th, 2011 at 11:14 am

    Hey Debby,

    Thanks for writing in. You’re slightly confused, but from what I read you are correct when you say you won’t qualify for the home affordable unemployment program (HAUP or UP) since you both aren’t receiving unemployment benefits. According to MakingHomeAffordable.com (http://www.makinghomeaffordable.gov/faqs/homeowner-faqs/Pages/default.aspx), In order to be eligible “Be unemployed when you request consideration for UP, and be able to document that you will receive unemployment benefits in the month of the forbearance period effective date.”

    HAFA is a short sale alternative for borrowers who really don’t qualify for other borrowers. Without knowing your exact situation, I can’t say why you may not qualify for HARP or HAMP.

    Are you behind on your payments?


  13. Carol from CO Says: March 15th, 2011 at 12:59 pm

    I agree with you Angie. The program does not help anyone. I have even talked to several lawyers in our area trying to get help and they know of no one who has actually received true help
    I got laid off in July, 2010. First thing I did was call BAC. Oh they were so helpful… don’t worry Carol we are not going to let you lose your home. They sent me the application packet (they actually send me 2 of the same packets) I fill out the application gathered all the documentation and FedEx it to the Mod program on Aug. 13, 2010. Called to confirm they had received everything they needed. Verbally they said they had received it.
    On Oct. 13, 2010 – note 2 months later I call to be told we haven’t received all the needed documents. You (not them but me) are missing two months of bank statements and your signed Form 4506-T. Now supposedly if you are missing documents you should receive a letter from the Modification Team. I only found out I have missing documents because I called. Oct. 13 I faxed that documentation and received verbal confirmation all docs had been received. Although every time I call to “check the status of my request” I would be told all docs have not been received I would have to argue with them to look through my entire file because all docs have been received. “Oh ya, here they are, so your file is complete all docs have been received and you are in underwriting. Then you will move to Quality Control for review and blah blah blah. Same crap different week”
    I have called these people every Monday morning from Oct. 13, 2010 – Feb. 7, 2011 and the same thing every time.
    Then Feb.14, 2011 I received a call from BAC Home Modification. I was so excited… They called me, this must be a good thing right? The voice at the other end informed me that I would not be calling the other number anymore instead I will be calling him at ###. Wow now I am really excited –you know cloud 9 excited, someone permanent to call… not just who ever. Next he told me I needed to update all my documents as the ones on file are outdated…. Wam bam hit the ground – excitement gone. I have to what? Ya and we need the updated documents by March 17, 2011.
    I gathered all needed documents and this time FedEx with signature required all the address provided on March 2, 2011. I called my person, he actually answered the phone. I told him the docs had been sent FedEx and I have notice of receipt by BAC on March 3, 2011. I want to make sure they reached your hands. He informed me that it could take up to a week for my docs to be scanned for him to review.
    Ok so I wait one week and one day… March 3rd I called my person…. Only this time when the phone is picked up it is my person informing callers his number has changed it is now #####. I call that number and guess what??? I am back to talking to whoever answers.
    Have you ever asked so how many people has the program helped? Good luck getting an answer. It seems no one has any information on this topic.

    SO has any one heard of any one actually getting help?

  14. TJ from NJ Says: May 17th, 2011 at 8:27 pm

    Ok, I must be one of the few borrowers that had been approved for the unemployment plan. I though it was a good deal since I didn’t have a job at the time. I was approved for 6 months (Oct 2010 – Mar 2011) with no payments due. I was told I would receive a modification package by the 5th month for me to send back so I could be reviewed for Hamp. (I have this agreement in wriitng) So I went back to work in Feb 11. The plan ended but I did not receive a package so I called to have one sent to me. While speaking to the rep I was treated poorly and was told that all those forbearence payments were due and if I couldn’t pay it in full that they could not take any payments from me. I kept calling back to get the paperwork and at one point they couldn’t even find my loan in their system. So (April 11) I spoke with a Hamp Advocate and I received the Hamp package, returned it and was quickly denied. I still have not receive my letter of denial with any explanation. The advocate told me I was denied because I already have a low interest rate. So now (May 11) I receive another financial package to be considered for a special modification. I starting to feel as though I was scammed. I know this is not how the program was intended to work. How do they expect me to pay back over $15k in payments when I just went back to work in Feb 11? In my ignorance, I thought once the program was over, those 6 months of payments would be put on the back end and I would resume my regular paymemts. I didn’t need my payments lowered. Now I’m facing foreclosure when I was only 1 month past due before starting on the program. What recourse do I have? Should I appeal my Hamp denial? Should I make a presidential complaint? Should I contact the OCC or the Atty General’s office for assistance? Actually I’m going to do ALL of the above. I had no complaints with my mortgage company until now but I’m not going to lose my home to a scam.
    Does anyone have any advice for me?

  15. Eva Says: September 26th, 2011 at 6:13 pm

    Applied for a Hamp loan mod in Dec 2010, Since then have been denied twice because of a negative NPV. Do you have any info how to pass this NPV?

  16. Tim Manni Says: September 28th, 2011 at 8:53 am

    Hey Eva,

    If you go more than 60 days past due, your lender has to run your modification through a net present value (NPV) test.

    What does this mean?

    Per Treasury guidelines: “A standard NPV Test will be required on each loan that is in Imminent Default or is at least 60 days delinquent under the MBA delinquency calculation. This NPV Test will compare the net present value (NPV) of cash flows expected from a modification to the net present value of cash flows expected in the absence of modification. If the NPV of the modification scenario is greater, the NPV result is deemed positive.”

    In other words, if the lender would lose less by foreclosing than by modifying your loan, you don’t qualify for a modification.

    A lot goes into this analysis, including credit scores, property value, income and an interest rate used to discount future cash flows and value your loan in today’s dollars. They look at the likelihood of default or re-default, what the property would fetch in a foreclosure sale and the cost of reducing the payment to 31% of your gross monthly income.

    I hope this offers a complete explanation. To reverse their decision, your credit score and your home’s value would have to increase and your cash flow would have to increase to prove to your lender you can still handle the modified payments.

    Thanks for commenting,

  17. Jen Says: October 12th, 2011 at 1:32 pm

    My husband recently lost his job and we applied for HAMP through our lender Wells Fargo. Our application has gone to the underwriter and we are waiting to hear back, but the bank is saying they are probably going to offer forebearance or the UP program. According to what I’ve read, we should qualify for HAMP. Do we have to accept UP or can we request HAMP? I’m scared that UP will run out and don’t want to go broke paying a mortgage we can’t afford.

  18. Tim Manni Says: October 14th, 2011 at 4:20 pm

    Hey Jen,

    To my understanding, HAUP is an offshoot of HAMP, so it’s not odd that you would qualify for both. I honestly don’t know if you can turn down HAUP for HAMP–that would be up to the lender. These days, I wouldn’t refuse any assistance. Also, I know of a lot of unhappy HAMP participants.

    Keep me updated, thanks for commenting,

  19. Charms Says: October 31st, 2011 at 3:04 pm


    Very interesting blog! My husband was laid off last January, after contacting Wachovia they advised us that because he had filed for unemployment benefits we were not eligible to apply for the HAMP program but instead placed us in the HAUP program.

    We made the agreed payments to Wachavio every month and once he regained employed were told that we were to resume our regular payment, plus the difference in payment for the last 5 months while participating in the HAUP program.

    My question is how do they expect, that once you are back to work that you can pay the difference in payments for the last 4-5 months?

  20. Tim Manni Says: November 2nd, 2011 at 8:32 am

    Hey Charms,

    That’s a tough one. Unfortunately that same problem was encountered by many who received loan mods. How long did they give you to make up the difference?

    Thanks for commenting,

  21. Lorri Says: January 16th, 2012 at 3:34 pm

    I would like to know are any of the people who set up these program unemployed? If they were all of the qualifications and rules would not be so rediculous and unrealistic

  22. Nicole Cruci Says: January 26th, 2012 at 9:57 am

    Unfortunately my mortgage company is Chase Home Finance and after several years of getting a run around on a modification, I finally filed a complaint with the attorney general’s office in my state. This drastic approach did get my modification to go through under the inspection of the attorney general. Shortly after getting my modification, I lost my job. I am the sole provider in my house with two teen children living with me. I called Chase to see if I can get help with the unemployment program they mentioned, and they told me they would grant me a 6-12 month forbearance if I was approved but then I would have to pay it all back within a month either when the forbearance period ended or when I got employed again. HOW IS THIS A HELP?

  23. Tim Manni Says: January 30th, 2012 at 7:18 pm


    Are you sure they said you have to pay all the forebearance back in just one month–six months worth of payments in one month?!


  24. Nicole Cruci Says: January 31st, 2012 at 8:31 am

    Yes, I am positive. I even called the HAUP number and we had a three way call and they confirmed it.

  25. Nicole Cruci Says: January 31st, 2012 at 8:35 am

    I forgot to mention that while on the three way call with the HAUP representative, Chase was unable to give me more details about the program unless I agreed to it. How can I agree to it when I dont have all the details and was told that I definitely would have to pay it back in a month?

  26. Nicole Cruci Says: February 12th, 2012 at 5:08 pm

    So two weeks have gone by and still no comment?

  27. Tim Manni Says: February 15th, 2012 at 11:25 am


    My apologies. While I can’t make the decision for you, I can lead you to some more info about the program:


    Here’s all the info MHA provides on the end of the forbearance period:

    If you get a new job during the forbearance period, let your servicer know. Otherwise, 30 days before your forbearance period expires, your servicer will provide you with an Initial Package so that you can request a modification through the Home Affordable Modification Program (HAMP). Return the Initial Package immediately so that the servicer can formally evaluate you for HAMP.

    Unfortunately that’s all the additional info I can provide you.


  28. Nana Says: March 19th, 2012 at 6:39 pm

    How does all this affect your credit standing

  29. Kathy Says: May 8th, 2012 at 1:57 pm

    Hi Tim,
    My brother is unemployed receiving benefits of 1612.00 per month. He submitted for HAMP. According to the process, HAUP needs to be assessed first. They are telling him he does not qualify for HAUP or HAMP. He was behind four months in his mortgage but then payed up to date so he could qualify for HAMP/HAUP. His monthly mortgage is $1440.00 per month. From my research, he meets the DTI by 31%. He does not rent out a room, he’s the living there by himself, and receives no other income. Thoughts? Please advise.

  30. cristy Says: March 7th, 2013 at 8:14 pm

    I’m in the same situation all of you are, unemployed and a person who has not been unemployed for about 13+ years. You’d think that after paying so much in taxes that they would have better programs available, NOT Superficial bandaid resolutions that end up putting you in a worst situation and the bank with pockets full of subsidies tax payer monies for participating in the program. I guess that what you get when you make a deal with the devil (Banks). Basically as most of you have said HAUP and other programs are really useless. They (banks) spend a lot of effort and money to get you “signed” up for these programs very well knowing that the details in the agreements really never help over 95% of those who apply. Their goal is to get your bad assests of their balance sheet and the only way they can do that is to foreclose and sell to another buyer, not adjust your mortgage and write the loss on their books. Also it is a BIG shame that the US government is actually slapping the hands that feed it.. “american taxpayers”. Remember that the programs sponsored by HOPE and then HAUP via the banks doesn’t really help anyone but the banks. Because if you really think about it the banks get double the pay on this. The foreberance is just that.. they tag what you owe to the back of the loan and at the same time during those six months they are getting government subsidies to cover your six months payments. SO it’s simple math, if you pay 1000.00 in mortgage and you enter the HAUP program you end up owing the bank and additional $6000.00 to your already underwater loan, mind you w/interest and the government pay the bank that same amount for the six month. This means the bank just make a quick and easy 12k with future interest, in the meanwhile while YOU ARE GOING TO LOOSE YOUR HOUSE VIA FORECLOSURE 100% AND THE BANK HAS JUST DOUBLED ITS MONEY. THIS IS THE PERFECT FORMULA TO SOLVE THE HOUSING ISSSUE. Doesn’t it remind you of the subprime formula …. Good luck, my family has told me it’s a loosing game even if with any programs congress passes. It’s a CATCH 22 … And unfortunately I”m starting to realize it it tooo. Good luck everyone.

  31. george Says: April 16th, 2014 at 4:45 pm

    I Haup working for anyone ????

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