If a family is seven months behind on their mortgage and has a debt-to-income ratio of 29%, which retention option would be best for them?

A Special Forbearance is the most suitable retention option for a family that is seven months behind on their mortgage and has a debt-to-income ratio of 29%. This option is specifically designed to assist borrowers who are facing temporary financial hardships and need a way to catch up on missed payments.

In a Special Forbearance arrangement, the lender agrees to temporarily reduce or suspend payments, allowing the homeowner to stabilize their financial situation. This can include plans that extend the repayment period or enable lower payments until the borrower's circumstances improve. This approach is particularly beneficial for those who are struggling but expect to regain their ability to meet their mortgage obligations in the near future.

The other options could potentially be helpful but may not align as well with the family's current situation. For instance, a Loan Modification involves changing the terms of the mortgage, which could be more complicated and time-consuming. A Repayment Plan typically requires the borrower to make their regular payments plus additional funds to catch up on the missed payments, which may be difficult given their current financial status. Lastly, an FHA Partial Claim is a specific tool that helps borrowers who are behind on FHA loans but usually applies to those who have had a temporary financial set-back and need to bring their mortgage current more quickly.