"The foreclosure process is a nightmare and I never wanted to go through with it. But I really didn't think that there was anything else that I could do. I tried calling the bank, begging them to help me modify my loan and got nowhere. I finally contacted 1st Foreclosure Prevention and they were able to modify my loan within a matter of weeks! I guess that they are better at negotiating than I am. It was really easy on my part, too, as I didn't have to worry about anything except getting them the right paperwork. They were really nice, helpful and helped to stop foreclosure."
"When we refinanced our home, we didn't think that we would be facing the foreclosure process. But there we were - after 15 years in our home, going through a foreclosure because we couldn't afford to pay the mortgage. We refinanced to get money out to finish the basement, but then I lost my foot in a snowmobile accident. I was laid up for a while and the bills mounted. Then we found that the mortgage payments were actually going up! After 15 years in the same place, it can be really tough. But my wife called 1st Foreclosure Prevention and they helped us out. They gave us free advice on how we could stop foreclosure and what to do. We were able to save our home from foreclosure with their help."
"When my wife died, I thought that we would be okay. But I found out that we relied on her salary to pay the mortgage and bills more than I thought. She always handled the money so I didn't think that I was going to have a problem. But when she died, I found that I couldn't afford to pay the mortgage anymore. So I contacted this company that I found online called 1st Foreclosure Prevention. They gave me a free consultation and talked to me about options and what I wanted to do. They explained how important it was to stop foreclosure before it begins and were able to give me the help that I needed. I found out that I didn't have to go through with the foreclosure process at all and was able to save my home. Thanks to them - they really gave me the foreclosure help at a time when I was at my lowest point."
"We were really behind on our mortgage and getting calls all of the time from the lender who wanted their money. We didn't know what to do and thought that we would have to go through a foreclosure. We knew that this happened to other people, but didn't think it would happen to us. But I had been sick for a while and off work. The medical bills took all of our savings and we even had to refinance to pay off the hospital. We contacted 1st Foreclosure Prevention and were really impressed with their service. They were able get the calls to stop as well as the foreclosure process while we worked with them on all of our options on what we wanted to do. We decided to sell our home and move on. Thanks to them, we have another home and are not struggling any more."
"After my husband died, I couldn't the mortgage payments at all on our home. I didn't know what to do and had tons of medical bills. I was at my wits end and was struggling just to get up in the morning because the foreclosure was making me so depressed. I had no idea what to do and was just going to let the bank take the house since I couldn't afford the payments. A friend told me about 1st Foreclosure Prevention. I contacted them and they gave me a free foreclosure evaluation and told me what I could do to keep my home. They negotiated with my lender for me and helped me stop foreclosure. Best of all, they relieved my mind from worry. They were very nice and really knew how to give me foreclosure help. Thank you."
"We were really in a jam. I was on disability because of my back and it wasn't enough to cover the mortgage payments. My wife lost her job and got another one, but it didn't pay as good as the first job. Our house was heading for the foreclosure process and fast. But we didn't know what to do. It seemed everything was spinning out of control for us. Luckily, my wife found 1st Foreclosure Prevention online. We filled out the form for the free foreclosure consultation and got a call the next day. We talked it over with them and gave them more information. Then they gave us a case study of our situation that was really detailed. They seemed to really know what they were doing and they did because the stopped foreclosure for us. They got us out of a bad situation - we can never thank them enough."
Home / Partial Claim To Stop Foreclosure
Using A Partial Claim To Stop Foreclosure
A partial claim can be used to stop foreclosure but is only available through your lender for a one time only deal. It is an interest free loan from the Department of Housing and Urban Development that can be obtained from your mortgage lender. It will allow you to make your mortgage current and catch up on a past due balance. A partial claim to stop foreclosure is a good solution if you have fallen behind due to a lost job or other problem that has been rectified and can still make your mortgage payments. Another use for a partial claim may be to hold onto your house and stop foreclosure until the house can be sold on the market. Other options include a forbearance, which stops the payments for a short period of time, a refinance or a loan modification. All of these loss mitigation options imply that you want to stop foreclosure and save your home.
A partial claim is a one-time bailout by HUD, but can only be used for past due monies on the property. You will still have to continue to make future payments. The partial claim is a lien placed on your property and will have to be satisfied when the loan is paid off, such as if the house sells.
Who Qualifies For A Partial Claim To Stop Foreclosure?
You have to be between 120 and 365 days delinquent on your mortgage in order to qualify for a partial claim. Chances are that your lender will want to rule out other options to stop foreclosure before having you apply for a partial claim. You will apply for the partial claim through your lender who will then apply to HUD on your behalf.
In order to qualify for a partial claim, you must be able to continue to make the mortgage payments on your home. The financial hardship that caused you to fall behind on your payments must be over and you must be ready to move on with keeping your home.
If you are more than 12 months behind on your mortgage payments, you may still be able to qualify for a partial claim if you can come up with the amount that you are delinquent to make it to 12 months in arrears. HUD will only issue the partial claim on 12 months worth of back due payments.
How The Partial Claim Works To Stop Foreclosure
You will have to apply for a partial claim with your lender who will make you complete paperwork required by HUD. In some cases, you may choose to have a loss mitigation specialist assist you in this process.
In addition to the paperwork required by HUD, you will also need a letter that gives the reasons why you have fallen behind on your mortgage. The reasons that you give should be acceptable. Such reasons why someone would fall behind on their mortgage could include losing a job, being hospitalized or some other type of catastrophe.
HUD will then inform you through your lender on what other documents that you need to complete. You will have to prove that you have overcome your financial difficulties and can take on the responsibility of paying your mortgage again. Your financial status will be scrutinized. Your employment will be verified and it will be determined whether or not you have enough money to pay your mortgage for the next three months. You will also need to show copies of your tax forms for the past two years.
The actual partial claim is a promissory note. This is a non interest bearing note that you will sign and will be due and payable at the time that you pay off your mortgage. It can be a good way to save your home and stop foreclosure if you went through a brief turn of bad luck, got back on your feet but fell behind in the mortgage payments and cannot catch up. You should also only use this option if you want to keep your home.
Once the partial claim is filed, the foreclosure process can stop and you may be able to save your home from foreclosure. Many people also use the partial claim as a strategy to stop interest from accumulating, stop foreclosure temporarily until a buyer can be found for the property. There are many ways a partial claim can help you. In order to find out more about this stop foreclosure option, seek foreclosure help through the assistance of loss mitigation specialists with a free foreclosure evaluation.
Why Lenders Agree To Partial Claims To Stop Foreclosure
The truth of the matter is that your lender does not want to foreclose on your property any more than you want to see them do this. They also want to stop foreclosure. This is especially true today, with more foreclosures on the books than ever before.
The FHA and HUD are requiring that lenders work hard to stop foreclosure, especially when it relates to residential, owner occupied property. There are government mandates in place to make sure that your lender works with you to give you some foreclosure help that you need to stop foreclosure. The foreclosure process is usually the last resort for the lender as well. You can often work things out if you get loss mitigation help right away. You can do this by getting a free foreclosure consultation from qualified loss mitigation specialists.
Other Ways Partial Claims Can Stop Foreclosure
Your lender cannot collect additional fees from you to cover their administrative costs of preparing the partial claim. If, however, your partial claim cancels a foreclosure action, your lender is entitled to collect the legal costs for the cancelled foreclosure from you.
A partial claim may also be combined with other foreclosure-avoidance options to produce an agreement that meets your financial needs. It may form part of a forbearance agreement with your lender, but it may not be a part of a loan modification arrangement.
To find out more about partial claims and receive a free evaluation from a loss mitigation specialist, call 866-477-7750 or click here to begin now.
