The Home Affordable Unemployment Program (UP) was introduced after the 2008 financial crisis as part of the federal Making Home Affordable (MHA) initiative to assist homeowners who lost their jobs. It offered qualifying unemployed homeowners a temporary forbearance on their mortgage payments for at least 12 months or until employment resumed, whichever came first. The program aimed to reduce foreclosures by giving families time to recover financially. It officially expired on December 30, 2016 (U.S. Department of the Treasury).
How the UP Program Worked
Homeowners qualified if they:
- Were unemployed and eligible for unemployment benefits
- Lived in the property as their primary residence
- Obtained their mortgage before January 1, 2009
- Owed less than $729,750 on their home mortgage
Approved applicants received a forbearance—a temporary reduction or suspension of mortgage payments—lasting up to 12 months. This did not forgive the debt but provided critical breathing room while searching for a new job. Afterward, homeowners could work with their servicers on repayment plans or loan modifications to make future payments manageable (Investopedia).
Transition to Current Mortgage Relief Options
Though UP has ended, current mortgage relief solutions are offered directly by mortgage servicers, often under guidelines from Fannie Mae, Freddie Mac, and the Consumer Financial Protection Bureau (CFPB). Key options include:
- Forbearance: Temporary pause or reduction in mortgage payments due to financial hardship such as unemployment, illness, or disaster. Learn more about Forbearance Agreements.
- Loan Modification: Permanent changes to the loan terms (interest rate, loan period) to lower monthly payments. More details on Mortgage Loan Modification.
- Payment Deferral: Missed payments are deferred to the end of the loan term, payable upon refinancing or sale.
What to Do If You Cannot Pay Your Mortgage
- Act promptly—contact your mortgage servicer to discuss hardship options.
- Request loss mitigation assistance. The loss mitigation team specializes in helping borrowers avoid foreclosure.
- Provide documentation such as unemployment verification or financial statements.
- Get all agreements in writing before halting payments.
Frequently Asked Questions
Can I still apply for the UP program? No, it ended in 2016.
Is forbearance loan forgiveness? No. Forbearance is temporary; missed payments must be repaid later.
Does forbearance affect credit scores? When coordinated properly, forbearance shouldn’t be reported as delinquency. However, missed payments before an agreement may impact credit (Consumer Financial Protection Bureau).
For more resources on managing mortgage hardship, see Mortgage Relief Programs and Home Affordable Modification Program (HAMP) guides.