If you're too far behind to do a loan modification, there still may be another option you could discuss with your lender. It's called a "Partial Claim"-an interest-free loan from the U.S. Department of Housing and Urban Development (HUD) to bring your mortgage current. You may qualify if:
- Your loan is at least 4 months delinquent but no more than 12 months delinquent.
- Your mortgage is not in foreclosure.
- You are able to begin making full mortgage payments.
HUD will pay your mortgage company the amount necessary to bring your mortgage current when the lender files the Partial Claim. You must execute a promissory note, and a lien will be placed on your property until the promissory note is paid in full. If you sell your house before the note is paid, the note must be paid from the proceeds of the sale. Visit HUD's website to get your questions answered about Partial Claims. |
