What is an FHA Partial Claim?

The FHA partial claim is a loss mitigation procedure that is offered in conjunction with HUD. In order to qualify for this process, you must have an FHA loan. With this process, you will be able to have funds forwarded to you in order to get your mortgage loan current again.

Promissory Note

Many times, individuals with FHA loans get behind on their payments. They might have had some type of financial difficulty that causes them to miss a few payments. When this happens, foreclosure is an option that they have to be aware of. At the same time, it is not the only option that a borrower has. They could instead work with the FHA in order to get an FHA partial claim. When this happens, HUD will forward enough funds in the form of a promissory note to get the loan current again. Then when the house is ultimately sold, funds will be used to repay the note and the mortgage. 

This is a nice alternative for individuals who have FHA loans and are not able to stay current on their mortgage. This option is only available once and the FHA will look at your financial situation in order to determine if you are eligible.

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