Partial Claim only applies to clients with current FHA loans. First Legal Group, P.A. will work with The Department of Housing and Urban Development (HUD) on a daily basis. Your mortgage company may agree to help you with a one-time payment, which would come from the FHA Insurance Fund.

Qualifications needed for this help may include:

1. Must be at least 4 months delinquent, but no more than 12 months
2. Able to begin making full payments again
3. Resolution of past hardship
4. May or may not be in Foreclosure
5. The mortgagor has the ability of long-term financial stability to support the mortgage debt or make the payment
6. If the home owner cannot bring the loan current through a forbearance or loan modification
7. Property is primary residence
8. If Bankruptcy has been filed, you may still qualify for a partial claim. The Bankruptcy Court must give approval.

HUD will require a signed promissory note. HUD will then place a lien on you property which is interest-free and will allow you to bring your loan current. However, the balance of this loan will be due when you pay off the loan, sell your home or leave the property.

Terms for Partial Claim:

1. Interest-free Note.
2. No monthly or periodic payments
3. Note due when the mortgage is paid off or when the home owner sells the property
4. No prepayment penalty
5. A refund can be applied for the mortgage insurance premium when the note is paid in full
6. Note payable to HUD
7. Partial payments can be made by cashier's check or certified funds

Information Take 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."

Finally, The Partial Claim may be combined with alternate plans. Even special forbearance may be combined to allow more flexibility for the home owner.