The Mortgage must meet the following conditions at the time the SFB - Unemployment Agreement is executed:
- be at least three months past due (61 Days Delinquent), but not more than 12 months due and unpaid; and
- not be in foreclosure, or foreclosure action has been suspended or canceled, when the SFB-Unemployment Agreement is executed.
- The Borrower has recently experienced a verified loss of income or increase in living expenses due to loss of employment.
- The Borrower must be an Owner-Occupant Borrower and will occupy the Property as a Principal Residence during the term of the SFB - Unemployment Agreement, unless an exception is granted.
- One or more Borrowers is not currently receiving Continuous Income or, alternatively, an analysis of the financial information under FHA Home Affordable Modification Program (FHA-HAMP) resulted in a Mortgage Payment greater than 40 percent of current gross monthly income and one of the Borrowers has a verifiable unemployment status.
- A Borrower has a verified unemployment status and:
- no Borrower is currently receiving Continuous Income; or
- an analysis of Borrower financial information under the Home Retention Priority Waterfall indicates that the SFB - Unemployment Option is the best or only option available for the Borrower.
The Mortgagee may offer an SFB - Unemployment Option to an unemployed Borrower when the Mortgagee has knowledge that the mortgaged Property is for sale or an assumption of the Property is in process.
The Mortgagee must obtain from the Borrower such supporting documentation of the Borrower’s unemployment as:
- Third-Party Documentation including receipts of unemployment benefits; or
- an affidavit signed by the Borrower, stating the date that the Borrower became unemployed and stating that the Borrower is actively seeking, and is available, for employment.
Any questions may be directed to the FHA Resource Center Toll-Free Telephone Number at (800) CALLFHA (225-5342) or by email to answers@hud.gov. Persons with hearing or speech impairments may reach this number by calling the Federal Relay Service at (800) 877-8339.
If you’re among those financially impacted by the COVID-19 pandemic, you might be concerned about how to pay your mortgage or rent. Federal and state governments have announced plans to help struggling homeowners during this time. For more information, visit: https://www.consumerfinance.gov/about-us/blog/guide-coronavirus-mortgage-relief-options/
The U.S. Department of Housing and Urban Development’s (HUD) Find Shelter tool provides information about housing, shelter, health care, and clothing resources in communities across the country, and is available at: https://www.hud.gov/findshelter.
Benefits.gov is an online resource to help you find federal benefits you may be eligible for in the United States. Visit https://www.benefits.gov/ for more information and a link to the Benefit Finder, to find information on government benefits you may be eligible to receive.
For policy information see Handbook 4000.1 III.A.2.k.iv.(A)-(B)(2) and IV.A.1.c. at https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh