The Home Affordable Refinance Program is a comprehensive Financial Stability Plan to stabilize the housing market. A summary of eligibility under this program is as follows:
" First-lien mortgages owned, guaranteed, or securitized by Freddie Mac that are single-family 1- to 4- unit primary residences, including condos, cooperatives, Single-Family Seller/Servicer Guide (Guide) eligible manufactured homes, and our negotiated conforming jumbo mortgages.
" FHA, VA, and RHS guaranteed mortgages are eligible, subject to the relevant agency guidelines.
" Mortgages for properties that are abandoned, vacant, or condemned are not eligible.
" Mortgages may be previously modified, but can only be modified once under HAMP.
Borrowers may be eligible for this program if they meet the following requirements:
" Borrowers who are 31 days or more delinquent and borrowers who are either current or less than 31 days delinquent and in imminent default.
" A borrower may be considered in imminent default if the borrower is current or less than 31 days delinquent on their mortgage payments, and have a hardship that is stated in the Hardship Affidavit document. In addition, the borrower must have a Debt Coverage Ratio that is less than 1.20 and Cash Reserves that are less than three times their current monthly PITIA payment.
" Borrowers who may be in foreclosure, in pending litigation involving the mortgage, or who are in active bankruptcy.
" Borrowers currently performing under another workout arrangement will be considered for a Home Affordable Modification if they request it.
" Borrowers must currently have a monthly housing expense-to-income ratio greater than 31 percent of their verified gross monthly income.
The Michigan Home Affordable Modification Program (CAMP) Hardship Affidavit is a crucial component of the foreclosure prevention initiative launched by the U.S. Department of the Treasury. This program aims to assist struggling homeowners in Michigan by providing them with affordable mortgage payment options, enabling them to avoid foreclosure and keep their homes. The Hardship Affidavit is a document that provides detailed information about the homeowner's financial situation, explaining the significant hardships they face, and serves as proof of eligibility for assistance under the CAMP program. The Michigan Home Affordable Modification Program Hardship Affidavit is used to evaluate the borrower's ability to meet the modified mortgage payment terms, ensuring that they genuinely need assistance to avoid foreclosure. This document requires homeowners to describe their current financial circumstances accurately, including their income, expenses, debts, and any additional challenges they may be facing. It helps lenders determine if they qualify for a loan modification that will result in a more affordable monthly mortgage payment. Different types of Michigan Home Affordable Modification Program Hardship Affidavits may include: 1. Unemployment Affidavit: This type of affidavit is for homeowners who have lost their jobs or experienced a significant decrease in income due to unemployment or underemployment. It highlights the impact unemployment has had on their ability to make mortgage payments. 2. Medical Hardship Affidavit: Homeowners facing substantial medical expenses or health-related challenges can utilize this affidavit to explain how their medical conditions have affected their income and ability to pay their mortgage. Medical bills, treatments, and health-related circumstances are detailed in this affidavit. 3. Income Reduction Affidavit: Homeowners who have experienced a reduction in income or a decrease in work hours can use this type of affidavit. It outlines the reasons behind the income reduction and its impact on the ability to meet mortgage obligations. 4. Divorce or Separation Affidavit: This affidavit applies to homeowners who are going through a divorce or separation. It allows them to provide details about the financial hardships arising from this change in marital status, such as increased expenses or decreased income. 5. Other Reason Affidavit: Under this category, homeowners facing hardships not mentioned above may explain their specific circumstances. These could include unexpected or increased expenses related to caring for a family member, education costs, or other valid reasons impacting their ability to make mortgage payments. By submitting the Michigan Home Affordable Modification Program Hardship Affidavit, homeowners can demonstrate their financial need and pursue options for a loan modification or alternative foreclosure prevention programs. It is essential to accurately complete and provide the requested information within the affidavit, as it plays a significant role in determining eligibility and securing assistance under the CAMP program.
