Affidavit of Financial Hardship
A sworn statement documenting your financial hardship, income, expenses, assets, and liabilities — supporting your loan modification application.
Overview
An Affidavit of Financial Hardship is a sworn, notarized statement providing a detailed picture of your financial situation: income, expenses, assets, debts, and the specific circumstances that caused your mortgage default. Unlike a Hardship Letter (which is narrative and personal), the Affidavit of Financial Hardship is a formal legal document that carries evidentiary weight. It is often required when: you are negotiating a loan modification and need to demonstrate financial need, you are seeking court-ordered mediation, you are applying for HAF or other government assistance programs, or you need to document your financial situation for bankruptcy proceedings.
Purpose
- •Provide a sworn, detailed financial picture supporting your modification or assistance application
- •Document income from all sources, monthly expenses, assets, and liabilities
- •Demonstrate financial need for court-ordered mediation or foreclosure alternatives
- •Support applications for HAF, state mortgage assistance, or other government programs
- •Create a formal record of your financial situation for use in litigation or bankruptcy
When to File
Submit as part of your loss mitigation package, with your mediation request, with your HAF/state assistance application, or with bankruptcy schedules. For loan modifications, submit together with the Hardship Letter and financial documentation.
Timeline
No deadlines. Submit with your loss mitigation or assistance application. The affidavit must be notarized, so plan ahead — schedule a notary appointment. Many banks, UPS stores, and libraries offer notary services (typically $5-$15).
Key Elements & Requirements
Personal identification: Name, address, loan number, contact information
Sworn statement: Declaration under penalty of perjury that the information is true and correct
Income section: Employment income, self-employment income, rental income, investment income, government benefits, child support, alimony, other income — with monthly amounts
Expense section: Mortgage/rent, utilities, food, transportation, medical, insurance, child care, other — with monthly amounts
Asset section: Bank accounts, retirement accounts, real estate, vehicles, other assets — with current values
Liability section: Credit cards, auto loans, student loans, medical debt, tax debt, other — with balances and monthly payments
Hardship explanation: Brief description of what caused the financial difficulty (complementing the Hardship Letter)
Notarization: Signature block with notary acknowledgment
Legal Standard
An affidavit is a sworn statement made under oath. False statements in a sworn affidavit constitute perjury — a serious criminal offense. The financial information must be accurate and consistent with your tax returns, bank statements, and other supporting documentation. Inconsistencies between your affidavit and your tax returns or bank statements will damage your credibility and likely result in denial of your application.
Strategy & Tips
Be completely accurate — every number in the affidavit must be supportable by documentation. Round to the nearest dollar. Include ALL sources of income and all expenses — even small amounts. The affidavit should paint a complete financial picture. If your monthly expenses exceed your income, the affidavit demonstrates why you need modification. If your income has recovered but you have significant arrearages, the affidavit shows why you need a modification that addresses the delinquency.
Court Filing Information
Where to File
Submitted to the servicer's loss mitigation department, HAF program office, or filed with the court as supporting documentation.
Fees
No filing fee. Notary fee: $5-$15.
Format
Standard affidavit format with caption, body, and notary block. Many servicers provide their own form — use the servicer's form if available.
Copies Required
Notarized original for submission + your copy + attorney copy.
Frequently Asked Questions
Do I need both a Hardship Letter AND an Affidavit of Financial Hardship?+
They serve different purposes. The Hardship Letter tells your story — why you fell behind. The Affidavit of Financial Hardship provides the numbers — your complete financial picture. For a complete loss mitigation package, both are recommended. Some servicers provide their own financial affidavit form (Form 710 has a budget section); if so, use that form.
What if my financial situation has changed since my last tax return?+
The affidavit should reflect your CURRENT financial situation. If your income has decreased since your last tax return, explain the change in the hardship section and provide current pay stubs or documentation. Consistency is important — if your affidavit shows lower income than your tax return, be prepared to explain why.
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