What Is Partial Claim Mortgage
The Partial Claim Defers the Repayment of Mortgage Principal Through an Interest-Free Subordinate Mortgage That Is Not Due Until the First Mortgage Is Paid...
The partial claim defers the repayment of mortgage principal through an interest-free subordinate mortgage that is not due until the first mortgage is paid off. Under the partial claim option, lenders are authorized to advance funds on behalf of a borrower, to reinstate a delinquent loan.
What is a partial claim?
A partial claim is a federally backed interest-free loan from HUD that homeowners can use to make their mortgage current and avoid foreclosure. The HUD partial claim program pays the homeowner’s past-due mortgage payments to the lender to avoid foreclosure.
Is a partial claim a second mortgage?
Tip. HUD partial claim forgiveness pays your lender enough money so that you won’t foreclose on your home. Then, you have a second mortgage that abides by rules established by HUD.
James Sterling reports on renewable energy developments, climate policy, ecological conservation, and green tech innovations around the globe.
