Sunday, April 20, 2008

FHA Partial Claim

There are some interesting facts regarding HUD's partial claim program. This will enable a homeowner with an FHA loan to get currect through a payment by the Department of Housing and Urband Development called a 'partial claim'.

Under the Partial Claim option, a mortgagee will advance funds on behalf of a mortgagor in an amount necessary to reinstate a delinquent loan (not to exceed the equivalent of 12 months PITI). The mortgagor will execute a promissory note and subordinate mortgage payable to HUD. Currently, these promissory or "Partial Claim" notes assess no interest and are not due and payable until the mortgagor either pays off the first mortgage or no longer owns the property.

Let's take a look as some questions and answers regarding HUD's partial claim.

Question 1: A Loan Modification was completed; the mortgagor then defaults again and has different circumstances; it's been less than 12 months since the Loan Modification was completed; can the mortgagee consider a Partial Claim?

Answer to FHA partial claim question one can be found at HUD partial claim info.


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