Homes Affordable Policy still Requires Hardship Affidavit

By vnagy_sanca • January 18th, 2011

Hardship is Still a Factor in Getting Your Short Sale Approved! The Supplemental Directive policy enhancements to HAFA and the Making Home Affordable Program take effect on February 1, 2011. Changes say that it is no longer required for a servicer to verify financial information or to determine if the borrower’s total monthly mortgage payment exceeds 31% of the borrower’s gross income. Yet, it is very clear that a documented Hardship is still a factor in getting your short sale approved.

Section 2 of Chapter IV is amended to include the following changes in the chart related to HAFA eligibility: Under financial hardship, it reads “A borrower has documented a financial hardship, evidenced by a signed Hardship Affidavit or RMA, wherein the borrower has represented that he or she does not have sufficient liquid assets to make the monthly mortgage payments.”

You can see a copy of Form 1021 Home Affordable Modification Program Hardship Affidavit here. It’s recommended that borrowers use this form to document their financial hardship in connection with the Home Affordable Modification Program.

If you review Form 1021, note that on page 1 it asks the reason for the hardship and an explanation, and that by signing page 2, you are saying that your statement is truthful, and you are giving the right to the servicers to verify both personal and financial information.

The Homes Affordable Program will not help those individuals with assets/high net worth. The borrower need be delinquent or becoming delinquent in the forseeable future with cause.
Call for your free consultation with a caring, knowledgable real estate professional today! Call Vickie Nagy at (925) 407-7987, or Contact Vickie Nagy by e-mail! CA DRE#01363932, BMR Real Estate | 4115 Blackhawk Plaza Cir, Suite 100 | Danville, CA 94506

Vickie Nagy is HAFA Certified, a CDPE Certified Distressed Property Expert and PSC Pre-Foreclosure Specialist Certified.

Vickie Nagy concentrates on helping sellers reach a successful short sale in San Ramon CA, Dublin CA, Danville CA and Pleasanton CA.

Vickie Nagy: (925) 407-7987 or email: Vickie@VickieSellsHomes.com

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