Avoid Foreclosure: Option 13 – PARTIAL CLAIM
- Tamera Aragon
- Oct 21, 2009
- 1 min read
Updated: May 22
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
