HOW TO DO A SHORT SALE WHEN YOU HAVE A HUD PARTIAL CLAIM!
If you've ever done a loan modification or forbearance with your FHA mortgage, you may have a HUD partial claim. A partial claim is a lien against the home for back due funds, that becomes due at resale.
Sadly, most partial claims are for much more than homeowners expect. These partial claims frequently eat up all the equity in the home, leaving surprised homeowners upside down and unable to sell traditionally.
Short sales with HUD partial claims work a little differently than most short sales with junior liens.
While most junior liens accept a short payoff in a traditional short sale, HUD partial claims can never be settled. Instead they supersede the 1st position FHA mortgage, and MUST be paid in full, while the 1st mortgage takes all the losses.
TIPS FOR A SUCCESSFUL SHORT SALE WITH A HUD PARTIAL CLAIM
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We specialize in short sales and have helped hundreds of owners move on from their over-leveraged homes, and we can help you!
I reached out to Minna when we were first considering a short sale. I didn’t know much about the process or how it worked so naturally I had a ton of questions. She answered all of my questions as well as explained the process in detail so I would know exactly what to expect. Several months later, we kicked off the sale. I had heard so many horror stories about what can go wrong in a short sale so I was very uneasy. With Minna’s expertise the process was so much smoother than I could have ever anticipated! It was just over three months from the time we listed to closing (which is fast for a short sale)! Minna’s responsiveness and dedication along the way was a huge asset!! It’s because of her that our family is able to put the past behind us and move on to bigger and better things! I highly recommend her!
Last Updated on May 18, 2023 by Minna Reid