Partial Claim (for FHA Loans only)

If you have an FHA Loan, we will be able to start discussions with your lender for a Partial Claim. This strategy is only available on FHA loans. Working together with The Department of Housing and Urban Development (HUD), your lender will agree to help you with a one-time payment from the FHA Insurance Fund. You may qualify if your loan is:

• At least 4 months but no more than 12 months delinquent
• You are able to begin making full mortgage payments
• You have resolved the hardship that caused you to fall behind
• You may or may not be in Foreclosure
• The mortgagor has the long-term financial stability to support the mortgage debt or make the payment
• The home owner does not have the ability to repay the past due amount through a special forbearance or modification
• The property is your primary residence
• If you have filed for Bankruptcy you may still qualify for a partial claim, the Bankruptcy Court must give approval

You will be required to sign a promissory note with HUD and they will place a lien on your property. This HUD loan is Interest-Free and will bring your account up to date immediately, but it is due when you pay off the loan or when you sell or leave the property.

Here are the terms for the Partial Claim:

• The note will be interest free.
• You will not be required to make monthly or periodic payments
• The note will be due when the Mortgage is paid off or when the home owner sells the property
• There will be no repayment penalty
• The Home Owner can apply for a refund in the mortgage insurance premium when the note is paid in full
• The note is payable to HUD
• You can make partial payments but they must be by cashiers check or certified funds

From the HUD Website:

If a loan has been modified or reinstated using a partial claim within the past three years, re-default risk is presumed to increase following a subsequent partial claim. Prior to allowing a partial claim in this circumstance, the mortgagee must prepare a written justification, and retain a copy along with supporting documents in the claim review file. It is anticipated that this will be a highly unusual occurrence, and that the cause of the second default will be unrelated to the original problem. There is a lifetime limitation of 12 monthly installments of PITI (Principal, Interest, Taxes, Insurance).

The Partial Claim may be combined with another plan or stand alone. In some cases a special forbearance may be combined to give the home owner some additional options.

WORDS TO LIVE BY

Remember what the Scriptures say:

“Many are the afflictions of the righteous, but the Lord delivers them out of them all.”
Psalm 34:19

And the words of Peter:

"Beloved, do not think it strange concerning the fiery trial which is trying you, as though something strange were happening to you..." 1 Peter 4:12