MHA Request for Short Sale
About this form
The MHA Request for Short Sale is a legal document used by homeowners to obtain approval from their lender for a short sale under the Making Home Affordable Program. This form serves to certify that the sale is an arms-length transaction, meaning the buyer and seller are unrelated, and outlines the required conditions for the sale to be accepted by the lender. It is distinct from other real estate forms as it specifically pertains to short sales and involves certification under penalty of perjury related to the accuracy of the information provided.
Key components of this form
- Identification of the servicer and borrower, including names and contact information
- Certification of an arms-length transaction and representations regarding linked agreements
- Details of the sale and conditions that must be met for lender approval
- Disclosure of potential penalties for providing false information
- Instructions for submission of the form to the servicer
Common use cases
This form should be used when a homeowner is facing financial hardship and is unable to continue mortgage payments, requiring them to sell the property for less than the amount owed on the mortgage. It is applicable when the homeowner wishes to avoid foreclosure and seeks a short sale as a solution. Furthermore, this form is necessary to gain permission from the lender to proceed with the transaction while ensuring compliance with the Making Home Affordable Program guidelines.
Who this form is for
- Homeowners or borrowers seeking approval for a short sale
- Individuals facing financial difficulties that make maintaining mortgage payments impossible
- Borrowers whose property value has decreased significantly below the mortgage amount
- Co-borrowers involved in the mortgage who need to sign for the sale approval
Completing this form step by step
- Identify the servicer, borrower, and co-borrower by entering their full names and contact information.
- Specify the loan details, including the loan number and property address.
- Complete the certification section, ensuring that the transaction qualifies as an arms-length sale.
- Gather any required documentation, such as buyer's financing details, to attach to the submission.
- Sign and date the form to confirm the accuracy of information provided.
Does this form need to be notarized?
Notarization is not commonly needed for this form. However, certain documents or local rules may make it necessary. Our notarization service, powered by Notarize, allows you to finalize it securely online anytime, day or night.
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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.
Mistakes to watch out for
- Failing to accurately certify the arms-length nature of the transaction.
- Omitting required contact information for the servicer or borrowers.
- Not providing necessary documentation, such as buyer's proof of funds.
- Signing the form without reviewing all details for accuracy.
- Forgetting to include the date of the sale agreement.
Why complete this form online
- Convenient access to legal forms for immediate download and use.
- Editable templates that allow for customization to meet specific needs.
- Reliability of having documents drafted by licensed attorneys.
- Guidance provided throughout the completion process to avoid errors.
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.
