A partial claim mortgage is a type of mortgage loan that the government provides to help prevent foreclosures on homes that are in default. The amount of the mortgage is reduced to ensure that the borrower will still be able to make the payments on the mortgage. This option is offered by the federal government and is designed to aid delinquent borrowers.
Partial claims are a good way to help a homeowner make their mortgage payments and are usually less harmful to credit than foreclosing on a home. There are several types of partial claim loans available. You should determine which one suits your needs before applying for the program.
Depending on your situation, a partial claim mortgage can be combined with a loan modification to create a better solution for your finances. With a partial claim, you may be able to pay off your loan and avoid a foreclosure in 30 years or less. However, your lender may require you to meet additional requirements before approving the mortgage.
Before you apply for a partial claim, you should read and understand the terms and conditions of the loan. This will help you determine if you can qualify. Once you submit your application, you will be guided through the rest of the process. While you are preparing your paperwork, you might consider checking your credit score to see if there are any discrepancies.
In addition to completing your application, you will need to prove that you have the resources to pay off your mortgage after you complete the partial claim. Your lender may ask for reimbursement for legal fees or foreclosure costs. To be eligible for a partial claim, you must have missed at least four payments on your mortgage.
One of the perks of a partial claim is that the lender does not have to recoup the money until your home is sold or refinanced. Another benefit of a partial claim is that it is not required to be paid back for a set number of years. When you refinance, you will also need to pay off the remainder of the mortgage. If you are looking for a better mortgage, you should speak with your bank.
There are many different ways to refinance your mortgage. Although your lender will not offer a loan specifically for a partial claim, your loan servicer may offer you a deal. For example, you can qualify for a 40-year mortgage modification, which extends your mortgage term by 360 months. By using this program, you will only need to make the minimum targeted 25 percent reduction in your mortgage payment.
Although there are a number of options, you should always consult with your lender to determine which loan options will be best for you. Having a plan in place will allow you to avoid foreclosure while ensuring that you stay in your home for the long haul. It is also a good idea to check your credit to avoid surprises in the future.