How do I stop the foreclosure process using a partial claim?

The foreclosure process commences with a notice of default which is sent to homeowners who have defaulted on at least two payments on their mortgage loans, or are delayed in payments by 60 days. If the borrower is not able to make the payments and the applicable charges, then the lender will sell the property. A borrower facing this dilemma must remember that there are several options that can be taken under these circumstances.

One of these options is a partial claim. A foreclosure process partial claim may be obtained by a borrower by getting a loan which is interest free from the HUD, so that the borrower is able to catch up with delayed mortgage payments and bring them up to date. A borrower may qualify for an HUD loan if: his or her payments are delayed by four months to 12 month; the borrower’s mortgage is not in foreclosure; the borrower can start making mortgage payments in full.

If a borrower opts for this solution, HUD will repay the particular lender the aggregate amount of the defaulted payments, and the borrower will sign a promissory note. Consequently, a lien will be applied on the borrower’s property and the borrower may repay the amount, interest free.

Other options available to the borrower are special forbearance, mortgage modification, pre-foreclosure sale, and deed in lieu of foreclosure.

These options provide the borrower with choices rather than allowing the foreclosure procedure take away a borrower’s home. It is important that a borrower finds the best option which will work under his or her financial circumstances.