Do Unemployment Benefits Count as Income?

by Pam

Do unemployment payments count as income and are your bank statements proof enough that you were paid the unemployment (automatic deposit)?

My bank (B of A) denied me a loan modification since I am on unemployment. I thought I read somewhere that the bank can't hold unemployment benefits against you. Is this true and how do I fix it?

Also, if unemployment IS a disqualifying factor, can I reapply for a loan modification if I become employed?

Mortgage Loan Modification Answer:

If you are unemployed and are experiencing hardship in paying your mortgage, your servicer should first qualify you under the Home Affordable Unemployment Program (UP).

You must qualify based on the UP eligibility requirements. You can find all the details and guidelines from the Making Home Affordable Program Handbook also known as the MHA Handbook. Your particular topic starts on page #110, Chapter 3.

Good luck and all the best to you.

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