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Partial Claim (FHA)

A partial claim is a very good alternative which is available to homeowners with Federal Housing Authority (FHA) mortgage loans who satisfy the Department of Housing and Urban Development (HUD) guidelines for a partial claim (listed below).  With this selection, homeowners are presented with an interest free loan, which HUD guarantees, to payoff the late portion and reestablish an overdue mortgage loan.  The mortgage loan must be paid back when the 1st mortgage loan is paid off, or when the house is sold.  At the completion of a partial claim, the homeowner doesn't need to concern themselves with the foreclosure or losing their house.

Qualifications for the partial claim requires homeowners to have the following:

  • Long term ability to make regular payments and pay back the loan.
  • Homeowners who are not capable of qualifying for a workout plan or a forbearance agreement.
  • Provide proof the financial hardship is over and was only temporary.
  • Homeowner needs to remain on the property and keep it in satisfactory livable condition.
  • The existing mortgage loan should be at least four months overdue, but no longer than twelve months.

Many homeowners believe a partial claim can't be combined with other options to stop foreclosure, such as a forbearance agreement.  If done right, it can be combined to provide a more affordable payment.  Generally, a partial claim is a one-time occurrence, but in special cases, when a 2nd, unconnected hardship has happened, a 2nd partial claim may be approved.

If your behind on your FHA mortgage loan then you may indeed qualify for a partial claim, to discuss this choice you should get hold of your mortgage lender immediately.  If you lender is choosing not to help you, or if the lender says you're not qualified, you may need to look for the help of an experienced professional to assist you in securing your right to a partial claim.  In many cases, your lender may automatically refuse your request because they have little or no knowledge of the process, or they could very well be to lazy to start the process.  Just do yourself a favor and find a true industry professional who can guide you through until it's been completed.

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