Know your eligibility
In order to qualify for a partial claim, one needs to provide proof of a crippling financial condition, but with the assurance that the situation is just temporary and will smooth out over the life of the loan. Moreover, the payments due must not be longer than 12 months, and the home must be your primary residence.
Initiating the process
This will be done by the borrower, who will inform the HUD about the delinquency. This could take a form of a letter where you will be explaining your current situation, with the necessary proofs, which will include your income details, bank statements, tax returns of the past two years etc. This information is further sent to your lender, who will then assess the situation on his own, and get in touch with the HUD examiner. After a thorough inspection, both the lender and the HUD will agree on the fact that a partial claim is the right option.
The borrower must sign a promissory note, which will be an indication of the fact the he or she will pay the amount after the first loan is paid off. Moreover, the lender is entitled to get extra fees in the process, which may mount up to cost he or she would have incurred during the foreclosure process. However, the second loan must be interest fee, and the lender may chose to waive off any accumulated fees.
In special circumstances, a partial claim can be combined with the forbearance agreement to give borrowers the best chance to protect their homes. Moreover, a second partial claim can be exercised, if the borrower can provide proof for getting significantly hit financially for the second time.