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General News

Partial Claim

Partial Claim

Partial Claim

Partial Claim

The U.S. Department of Housing and Urban Development (HUD), offers homeowners with Federal Housing Authority (FHA) loans financial assistance to help pay past due mortgage payments. In order to qualify for a partial loan, homeowners must be at minimum four months, but no more than 12 months, behind on their mortgage payment. The home must be the homeowner’s primary residence and the borrower also must provide an explanation about the financial hardship that caused them to fall behind on their mortgage payments.

Financial Requirements

The borrower must demonstrate that they do not have the financial ability to become current on their past due mortgage payments through a loan modification program. A complete a financial assessment must be done by a lender to determine disposable or surplus income amounts. If the amount produced is less than the amount needed to pay, the claim process will be continued. The homeowner must also provide proof that their income is sufficient enough to continue making payments.


1. At least 4 months but no more than 12 months delinquent
2. You are able to begin making full mortgage payments
3. You have resolved the hardship that caused you to fall behind
4. You may or may not be in Foreclosure
5. The mortgagor has the long-term financial stability
to support the mortgage debt or make the payment
5. The home owner does not have the ability to repay the past due amount through a special forbearance or modification
6. The property is your primary residence
7. If you have filed for Bankruptcy you may still qualify for a partial claim, the Bankruptcy Court must give approval
**You will be required to sign a promissory note with HUD and they will place a lien on your property. The loan is interest-free and you must pay off when you sell/leave the properly but it will bring your account up to date immediately.


1. The note will be interest free.
2. You will not be required to make monthly or periodic payments
3. The note will be due when the Mortgage is paid off or when the home owner sells the property
4. There will be no repayment penalty
5. The Home Owner can apply for a refund in the mortgage insurance premium when the note is paid in full
6. The note is payable to HUD
7. You can make partial payments but they must be by cashier’s check or certified funds

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. The Partial Claim may be combined with another plan or stand alone. In some cases a special forbearance may be combined to give the home owner some additional options.
Phillips, L. (2009, July 7). Partial claim (fha). Retrieved from
If you would like to know more information about Partial Claims please contact United Financial Counselors.

Posted in General News