Partial claims can be used in situations where a homeowner is between 4 to 12 months past due on their mortgage payments and are experiencing a significant financial hardship. In these situations, it is possible to have The Secretary of Housing and Urban Development (HUD) advance the homeowner the amount of money that is needed to restore their past due loan.

Requesting a partial claim is only available with FHA mortgages. In order to qualify for a partial claim you need to be able to make full mortgage payments going forward and must be able to show proof of long term financial stability.

If a borrower is awarded a partial claim then their past due mortgage payments are put into a 2nd mortgage contract payable to HUD. A partial claim note is subordinate to the original mortgage note and will place a lien on the property which requires the homeowner to make payments on the partial claim note once the first mortgage has been paid off. You will not be required to make monthly or periodic payments on the partial claim note and there is no interest charged.

We will work to help you qualify you for a one-time partial claim note. The method of obtaining a partial claim might be combined with other mortgage options, or it can be used as by itself to help prevent a potential foreclosure.

At S.J. Packman & Associates, before we make any recommendations, our attorneys, certified debt specialists, and paralegals, are trained to ask the right questions to find out about your specific situation. Based on your current income and your financial hardship, we will determine which course of action will work best for you. We do not only offer one path, as there is no one process that can solve everyone’s needs. We will take our time with you and help evaluate what your best course of action should be. Call now and one of our advisors will be there to get you started on your path to financial freedom. There is no obligation to enroll, so don’t delay.