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 California Home Affordable Modification Program (CAMP) Hardship Affidavit is a crucial component of the loan modification process for homeowners seeking assistance in California. This affidavit serves as a declaration of financial hardships faced by the homeowner, allowing them to present their case for eligibility under the California CAMP guidelines. The affidavit is a means for the homeowner to provide evidence of their financial difficulties and serves as a tool to assess their eligibility for mortgage modification programs. The California CAMP Hardship Affidavit requires homeowners to complete a comprehensive form in which they detail various aspects of their financial situation. It prompts them to disclose their income, expenses, assets, and liabilities while focusing on the specific challenges they are facing that hinder their ability to fulfill their mortgage obligations. Homeowners may list hardships such as unemployment, reduced income, excessive debt, medical expenses, divorce, or other specific circumstances that have contributed to their financial instability. There are different types of California CAMP Hardship Affidavits designed to cater to various borrower situations. These include: 1. California Unemployment Mortgage Assistance (UMA) Hardship Affidavit: Designed for unemployed homeowners who are actively searching for employment. This affidavit aims to assist them by providing temporary relief in mortgage payment obligations during their job search. 2. California Principal Reduction Program (PRP) Hardship Affidavit: Geared towards homeowners who are experiencing a significant decrease in home value compared to their mortgage balance. This affidavit allows them to present their case for potential principal balance reduction to achieve more sustainable mortgage terms. 3. California Transition Assistance Program (TAP) Hardship Affidavit: Targeted specifically at homeowners who are unable to afford their mortgage payments due to involuntary long-term or permanent job relocation. This affidavit enables them to explore options for relocation assistance and potential mortgage payment relief. It is essential for homeowners to accurately complete the California CAMP Hardship Affidavit, providing detailed and verifiable information regarding their financial situation. Inconsistencies or incomplete information can negatively impact their chances of qualifying for loan modification assistance. Additionally, supporting documentation such as pay stubs, tax returns, bank statements, and hardship letters should be submitted to further strengthen their case. It is important to note that the California CAMP Hardship Affidavit is just one step in the loan modification process. Homeowners should consult with their loan service or a HUD-approved housing counselor to fully understand the requirements, eligibility criteria, and possible outcomes associated with this program.
