MHA Request for Short Sale
The MHA Request for Short Sale is a form designed for homeowners who wish to obtain lender approval for a short sale under the Making Home Affordable Program. This form is crucial for borrowers facing financial hardship, enabling them to sell their property for less than the outstanding mortgage balance. Unlike typical sale forms, this request specifically addresses the lender's consent to accept a reduced payoff in fulfilling the mortgage obligation, protecting the borrower against future claims for the deficiency amount.
- Name and contact information of the servicer and borrower.
- Certification of an arm's length transaction and disclosure of all agreements related to the property sale.
- Documentation requirements, including buyer's proof of funds or pre-approval letter.
- Servicer's conditions for approval or disapproval of the short sale.
- Disclosure about potential tax consequences and impacts on credit reporting.
This form should be used when a homeowner is unable to continue making mortgage payments and wishes to sell their home for less than the mortgage amount owed. Common scenarios include job loss, medical emergencies, or other financial hardships that make it unsustainable to retain the property. By using this form, borrowers can facilitate a smoother transition from homeownership while mitigating the financial impact of a property foreclosure.
This form is intended for:
- Homeowners who are struggling with mortgage payments.
- Borrowers eligible under the Making Home Affordable Program.
- Individuals seeking to sell their property at a loss with lender consent.
Follow these steps to complete the MHA Request for Short Sale:
- Identify and fill in the names and contact details of the servicer and borrowers.
- Certify that the transaction is an arm's length sale by checking all required disclosures.
- Attach necessary documentation, including the buyer's financial proof or pre-approval letter.
- Review all terms outlined in the Request and ensure accuracy before signing.
- Submit the completed form to the servicer along with any additional required documentation.
Notarization guidance
This form usually doesn’t need to be notarized. However, local laws or specific transactions may require it. Our online notarization service, powered by Notarize, lets you complete it remotely through a secure video session, available 24/7.
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Make edits, fill in missing information, and update formatting in US Legal Forms—just like you would in MS Word.
Download a copy, print it, send it by email, or mail it via USPS—whatever works best for your next step.
Sign and collect signatures with our SignNow integration. Send to multiple recipients, set reminders, and more. Go Premium to unlock E-Sign.
If this form requires notarization, complete it online through a secure video call—no need to meet a notary in person or wait for an appointment.
We protect your documents and personal data by following strict security and privacy standards.
- Failing to provide accurate information regarding the seller's financial situation.
- Not including the required documentation, such as buyer's proof of funds.
- Submitting the form without proper signatures from all parties involved.
- Neglecting to fully disclose any prior agreements related to the sale.
- Missing the submission deadline specified by the mortgage servicer.
- Convenience of downloadable forms that can be completed at your own pace.
- Forms drafted and vetted by licensed attorneys, ensuring legal reliability and compliance.
- Access to helpful guidance for filling out the forms correctly.
- Ability to edit and customize the form to meet your specific needs.
Legal use & context
- The MHA Request for Short Sale is legally binding once signed by the borrower and servicer.
- Inaccurate information may lead to legal consequences, including perjury charges.
- This form is part of the broader Making Home Affordable initiative to prevent foreclosure.
Summary of main points
- Utilize the MHA Request for Short Sale to secure lender approval for selling a property at a loss.
- Ensure all parts of the form are completed accurately to avoid penalties.
- Consider local laws regarding notarization and additional requirements.
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FAQ
The Home Affordable Foreclosure Alternatives (HAFA) Program provides additional options to avoid costly foreclosures and offers incentives to borrowers, servicers and investors who utilize a short sale or deed-in-lieu (DIL) to avoid foreclosures.
Timing also differs: Short sales can take up to one year to close, while foreclosures generally move along much faster because lenders are intent on recovering the money they're owed. Furthermore, a short sale is far less damaging to your credit score than foreclosure.
Understanding the Short Sale / Deed-in-Lieu guidelines and application process. The HAFA program expired in December 2016 and is no longer available.HAFA provides protection and money to eligible borrowers who decide to do a Short Sale or a Deed-in-Lieu of Foreclosure.
The Home Affordable Foreclosure Alternatives (HAFA) Program provides additional options to avoid costly foreclosures and offers incentives to borrowers, servicers and investors who utilize a short sale or deed-in-lieu (DIL) to avoid foreclosures.
HAMP works by encouraging participating mortgage servicers to modify mortgages so struggling homeowners can have lower monthly payments and avoid foreclosure. It has specific eligibility requirements for homeowners and includes strict guidelines for servicers.
Step 1: Contact the lender's Loss Mitigation Department. Step 2: Completing the Short Sale Package. Step 3: Formulating the Hardship Letter. Step 4: Obtain Lender Approval to Sell. Step 5: Selling the Home.
Get a Property Valuation Analysis. Get a Hardship Letter. Contact the Lender for a Short Sale Application. Prepare the Sales Contract. Assemble the Short Sale Package Together.
Why Banks Would Prefer a Short Sale Over ForeclosureBanks are run like a business because they are a business looking to earn a profit. If it costs more to foreclose over agreeing to a short sale, the bank is very likely to favor the short sale.
A short sale is an alternative to foreclosure. A short sale prevents you from having to go through foreclosure and eviction. A short sale does make a smudge on your credit report but is much less traumatic to your credit than a foreclosure.
