How to Get a Partial Claim
If you are late on your mortgage payments, you may be able to obtain a separate loan that carries no payments or interest until your first mortgage is repaid. These guidelines will show you how to use a partial claim to bring your mortgage current again, all without having to catch up on the arrears.
Benefits of a Partial Claim
A partial claim can be combined with a special forbearance
or it may be used as a standalone solution. Benefits include:
- Zero interest charges accrue on the loan.
- Payments are deferred until your primary mortgage is repaid.
- There are no prepayment penalties.
Qualifications of a Partial Claim
You may be able to save your home from foreclosure by using a partial claim. In order to qualify, you must meet all of these eligibility requirements:
- You must be at least 120 days delinquent on your mortgage loan, but not more than 12 months delinquent.
- You must be unable to catch up on arrears on your own due to a weakened financial status, including through a special forbearance as a sole solution.
- You must be able to reasonably afford your regular mortgage payments.
- You must occupy and maintain the property.
- You must not have qualified for a loan modification.
A partial claim may include up to 12 monthly payments. It is sometimes referred to as a "soft second" since it behaves similarly to a second mortgage. However, it is designed for homeowners who are unable to make payments on it until after their regular mortgage payments cease. Your lender may be reimbursed for some documentation fees by the Department of Housing and Urban Development (HUD).
Getting help through a HUD-approved housing counseling organization is recommended if you intend to pursue this option.