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 Urban Development will pay your lender the amount necessary to bring your mortgage current. You must execute a Promissory Note, and a Lien will be placed on your property until the Promissory Note is paid in full.

The Promissory Note is interest-free and is due when you pay off the first mortgage or when you sell the property.

For more information on this option you may contact:

National Servicing Center

Email: hsg-lossmit@hud.gov

1-888-297-8685

For more information and coaching: Avoid Foreclosure eBook