Option 11. MORTGAGE LOAN MODIFICATION
(Available on a very limited number of VA loans with lender and/or investor approval) (Called Recast for FHA)
Definition: A restructuring of loan that could result in a lower interest rate, extending the term of your loan, thereby lowering your monthly mortgage payments.
If you have incurred a long term financial hardship and can afford a new agreed upon payment, this might be an option for you. A loan modification is a permanent change to your mortgage. There are costs and fees associated with a modification that you will be responsible for. All property taxes … Read the rest
Option 13. PARTIAL CLAIM.
(FHA mortgages only) (Some Freddie Mac Investor loans)
Definition: This is a loss mitigation option that allows a borrower, with help from a lender, to get an interest-free loan from HUD to bring their mortgage payments up to date
You may qualify if:
- Loan must be 92 days delinquent (4 full payments due and unpaid).
- Mortgagor must have overcome the cause of default.
- Owner-occupant committed to continuing occupancy as primary residence.
- You are able to begin making full mortgage payments.
When your lender files a Partial Claim, the U.S. Department of Housing and … Read the rest