Can I get HUD Partial Claim Forgiveness?
A HUD partial claim is an interest-free loan from HUD to help make a loan modification possible, or to get you caught up on overdue payments on an FHA loan. This silent second mortgage sits on the back of your loan and must be paid off at refinance or resale.
Unfortunately, there is no way to get forgiveness for your HUD partial claim.
There are two ways to eliminate a HUD Partial Claim:
Full Payoff of the Claim
You can make full payment on the HUD partial claim by paying it off out of pocket, paying it off with a sale of the property or by paying it off with a refinance of the property.
Short Sale of the Home
Need help navigating a home sale with a HUD Partial Claim?
Last Updated on December 27, 2023 by Minna Reid