How to Fill out a Hardship Affidavit on a Loan Modification
If you are having difficulty making your monthly mortgage payments, a mortgage loan modification may lower your payments to help you avoid foreclosure. If you are behind on your payments, a modification can also bring your account current, which may improve your credit rating over time. As part of the application process under the Making Home Affordable program, you will need to complete a hardship affidavit, which certifies information necessary for the servicer to approve your for a mortgage modification.
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Instructions
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Obtain Form 1021 from your mortgage loan servicer.
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Fill in your mortgage loan number and the name of your loan servicer in the blanks at the top of the form.
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Complete personal information for yourself and your co-borrower, including your name, property address, Social Security number and date of birth.
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Check the appropriate box to indicate whether you intend to keep or sell the property.
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Indicate whether the property is your primary residence, a second home or an investment home by checking the appropriate box on the form.
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Check the appropriate box to indicate whether you occupy the home, the property is currently rented to tenants or the home is vacant.
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Indicate your reason for applying for a mortgage loan modification by checking the appropriate box next to the reason that most closely matches your financial situation. Provide a description of your hardship in the space provided.
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Indicate whether you have filed bankruptcy, as well as the status and type of any bankruptcy, by checking the appropriate boxes below the hardship reason section. If you have filed bankruptcy, fill in the filing date and case number in the space provided.
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Check the appropriate boxes to indicate your ethnicity and gender as well as your co-borrower's ethnicity and gender.
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Sign and date the document at the bottom of the Acknowledgement and Agreement section and have the co-borrower sign and date the form in the space provided.
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Tips & Warnings
Keep in mind that you do not have to include your ethnicity and gender information. You can check the box next to "I do not wish to furnish this information."
Keep in mind that not all modifications are made through the Making Home Affordable program. Your lender may use its own program; however, the Making Home Affordable program is the only one that uses this hardship affidavit.
Avoid making false statements on the hardship affidavit. This can disqualify you from obtaining a loan modification.
