Your lender may be able to work with you to obtain a one-time payment from the FHA-Insurance fund to bring your mortgage current. Your loan must be FHA insured.
FHA will advance the defaulted amount on behalf of the borrower to the lender. The loan must be at least four months due but not more than twelve months due.
In curing the defaulted amount, FHA creates a subordinate mortgage from the borrower that is due once the borrower sells the property or when the first mortgage is paid in full.
You must execute a Promissory Note, and a Lien will be placed on your property until the Promissory Note is paid in full. The Promissory Note is interest-free and you are not required to make monthly or periodic payments. There is no repayment penalty and the homeowner can request a refund in the mortgage insurance premium when the note is paid in full.
- Your loan is at least 4 months delinquent but no more than 12 months delinquent
- You are able to begin making full mortgage payments
- The hardship that caused you to fall behind has been resolved
- You may or may not be in Foreclosure
- You have the long-term financial stability to support the mortgage debt or make the payment
- The homeowner cannot repay the past due amount a special forbearance or loan modification
- The property is your primary residence
If you are in the process of foreclosure you may still request a partial claim. The legal fees and related foreclosure costs may be included in the Partial Claim amount. However, accrued late charges should be waived by the lender at the time of the Partial Claim.