FHA home-retention options
HUD's current FHA loss mitigation materials describe options intended to bring an eligible mortgage current and, in some cases, reduce the monthly payment. Program rules can change, so confirm the current requirements with your servicer or HUD.
- Repayment plan
- Temporary forbearance
- Standalone partial claim
- Standalone loan modification
- Combination loan modification and partial claim
- Payment Supplement using a partial claim
What a partial claim means
A partial claim can place eligible past-due amounts into an interest-free subordinate lien. It is not a gift. Under HUD's description, repayment is generally delayed until a later event such as the final mortgage payment, sale, transfer, assumption, or certain refinances.
- Ask for the exact partial-claim amount.
- Ask when it becomes due.
- Confirm whether a modification is also part of the offer.
- Keep the recorded documents with your mortgage records.
The FHA Payment Supplement
HUD describes the Payment Supplement as using a partial claim to resolve delinquency and temporarily reduce the monthly principal and interest payment for three years. This option is not the same as permanent principal forgiveness.
- Request a written breakdown of the payment reduction.
- Ask what payment applies after the supplement period.
- Review how escrow changes could affect the total monthly payment.
When retention is not affordable
HUD also identifies a pre-foreclosure sale and deed in lieu as possible home-disposition options for eligible FHA borrowers. These options require careful review of the approval terms, liens, relocation, remaining obligations, and tax consequences.
- Call the FHA Resource Center at 800-225-5342 for program information.
- Find a HUD-approved housing counselor at 800-569-4287.
- Ask your servicer for an FHA loss mitigation review in writing.
- Consult a qualified professional about legal and tax consequences.
Official resources to search directly
To keep you on Foreclosure Leader, these names are provided without outgoing links. Type the agency name into your browser or call the agency using a verified number.