A partial claim is an option available to homeowners with FHA loans who meet the HUD guidelines for a partial claim (see below). With this option, homeowners are given an interest free loan, guaranteed by HUD, to pay off the arrears and reinstate a delinquent loan.  This loan is must be repaid when the first mortgage is paid off, or when the property is sold. After a partial claim is completed, the homeowner does not need to worry about foreclosure or losing their home.

Homeowner must have the following partial claim qualifications:

Long term ability to repay the loan and make normal payments

Inability to qualify for a forbearance agreement or workout plan

Ability to prove that the financial hardship is over

Homeowner must continue to live in the property and keep it in good livable condition

Existing loan must be at least 4 months, but not more than 12 month delinquent

Many people think a partial claim can not be combined with other options to stop foreclosure, such as a forbearance agreement, or a chapter 13 bankruptcy; however, if done correctly, these options can be combined to allow an even more affordable payment.  In general, a partial claim is a one time occurrence, but in rare cases, when a second, unrelated hardship has taken place, a second partial claim could be approved. 

If you have fallen behind and you think you may qualify for a partial claim, you should contact your lender immediately and discuss this option. If you lender is not cooperative, or if they say you are not qualified, then you may want to seek the help of a professional to help you secure your right to a partial claim.  In many cases, your lender may automatically turn you down, because they are not familiar with this process, or they are simply too lazy to begin this process. Either way, don’t give up, just find a professional who can help see you through this process until it’s complete.

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3 comments

  1. […] Federal Housing Administration or FHA- This part of the Housing and urban Development agency or HUD department.  FHA is responsible for determining industry standards for mortgage loans by private lenders.  They also insure mortgages by private lenders. […]

  2. […] A Partial Claim Another options you may what to look into is a partial claim.  This is where the FHA-Insurance fund can bring your mortgage up to date by giving you a […]

  3. Sonja Silas says:

    I need to know about your services. We are late on our payments because of my husbands job os slow. If someone could help us, we can finish and keep our home. Five of us live there and we love our 3 acres and our home. We do not want to move. Please help in anyway possible.
    Thanks, Sonja Silas sonjasilas@yahoo.com

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