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 Minnesota Home Affordable Modification Program (CAMP) Hardship Affidavit is a crucial document used for homeowners in Minnesota who are facing financial hardship and seeking assistance in modifying their mortgage loans. This affidavit serves as a formal statement from the homeowner, outlining the financial challenges they are experiencing that make it difficult for them to meet their monthly mortgage payments. The Minnesota CAMP Hardship Affidavit is designed to provide a comprehensive overview of the homeowner's financial situation, ensuring that all relevant details and supporting documents are included. It helps lenders evaluate the homeowner's eligibility and determine the appropriate course of action to help them avoid foreclosure. There are various types of Minnesota CAMP Hardship Affidavits that may be utilized depending on specific circumstances. Some key types include: 1. Loss of Income Affidavit: This type of affidavit is commonly used when the homeowner has experienced a significant reduction in income, such as job loss, reduction in work hours, or business closure. It requires the homeowner to provide documentation, such as termination letters, pay stubs, or profit/loss statements, to support their claim. 2. Medical Hardship Affidavit: This affidavit is used when the homeowner or a dependent is facing substantial medical expenses, which have caused financial strain. In addition to the affidavit itself, supporting medical documents, bills, and insurance statements are typically required. 3. Divorce/Separation Affidavit: When a homeowner is going through a divorce or separation, this type of affidavit is used to outline the resulting financial difficulties. It may include documentation such as court orders, divorce decrees, or child support payment details. 4. Natural Disaster Affidavit: In the event of a natural disaster, such as floods, tornadoes, or wildfires, this affidavit provides homeowners an opportunity to demonstrate the impact it had on their financial stability. Supporting documents such as insurance claims, FEMA assistance records, or repair estimates are typically required. By completing the Minnesota CAMP Hardship Affidavit accurately and thoroughly, homeowners have a better chance of qualifying for assistance through the program. It is essential to provide all necessary information and supporting documentation to increase the likelihood of a successful loan modification, allowing homeowners to regain financial stability and avoid foreclosure.
