Sunday, April 20, 2008

Interesting that the fha partial claim is available to fha bad credit situations

Here is an answer to the fha partial claim question that was asked on HUD's website for the partial claim questions/answers.

Answer: Yes, when using a Preforeclosure Sale after a Partial Claim was provided on an earlier default, you must include the amount of the Partial Claim when calculating total indebtedness for the purpose of a Preforeclosure Sale. In order to be in compliance, mortgagees must include the unpaid principal balance, accrued interest, and the partial claim amount to correctly calculate the total outstanding mortgage indebtedness. HUD must net a minimum 82% of the sales proceeds from the Preforeclosure Sale. Refer to Mortgagee Letter 2003-19, dated November 20, 2003.

There are many loan modifications for fha loans that are taking place. This is not to be confused with teh fha secure initiative and fha program that is available to refinance an fha loan. Take a look at all of your foreclosure avoidance options and then lower your interest rate and payments if possible to avoid foreclosure. Sometimes in florida the short sale is the better options and sometimes the fha mortgage refinance is better. Learn all of the forbearnace and foreclosure options first and then choose the best foreclosure avoidance strategy for your situation. SOmetimes this results in a 1099 for cancellation of debt and sometimes the mortgage forgivenes act is applicable. Talk to your accountant too. The FHA secure details are following in a supplementary blog post.


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