Susie,
That is a good question and not a simple one to answer. In general, it will depend on how long you will be getting the unemployment and also what lender it is with. Some banks require 9 to 12 months of unemployment to allow it to count, and others won't count it if you are not receiving it for a long period of time. Contact a loan modification Attorney firm and have them handle your loan modification correctly for you. If you are already working on it yourself and get denied, you can still find a loan modification company that can assess the situation for you for free and not collect their attorney fee unless you want to move forward. Find an attorney loan modification company that offers 100% money back guarantee and also is almost 100% successful

I am not sure if unemployment income would be used in the underwriting for the mod. But thinking logically, the use of the unemployment income, would be limtied at best, because there is a cutoff when the benifits will stop. Therefore, I would not think the unemployment income would be used in the underwriting of the mod. When they review the income and expenses, the underwriters are to determine the ability to afford the property in the future. If income has a stopping point it limits the ability to pay.

The main issue will be if your loan is a fnma or fhlmc loan falling under the gse requirement. IF the loan is a non gse loan than they are going to look at the total income to debts and the net present value to determine the likley hood of making payments will be the key.

Good Luck

Keith Manson
First Weber Group
Certified Distressed Property Expert
Greenfield,Wisconsin