Which loss mitigation option may allow a borrower an FHA Partial Claim?

The FHA Partial Claim is a specific loss mitigation tool designed to assist borrowers who are struggling to stay current on their FHA-insured mortgages. The correct option regarding which loss mitigation option may allow a borrower to receive an FHA Partial Claim is the FHA-HAMP Loan Modification.

This option is crucial as it provides an opportunity for borrowers facing temporary financial hardships to receive assistance. An FHA Partial Claim involves the FHA providing a no-interest loan, which is utilized to bring the mortgage current. This is typically a one-time advance that helps eligible borrowers avoid foreclosure by covering missed payments and bringing the loan back into good standing.

In comparison, other choices, while related to FHA financing, do not specifically facilitate an FHA Partial Claim. The FHA 203(k) Loan is primarily a rehabilitation program, allowing buyers to finance the purchase and renovation of a home but does not relate to loss mitigation options. Traditional refinance options would generally not apply to borrowers needing immediate assistance with missed payments, and Special Forbearance refers to a temporary reduction or suspension of mortgage payments instead of a long-term strategy that leads to an FHA Partial Claim.

Thus, the FHA-HAMP Loan Modification is the appropriate pathway through which a borrower may qualify for an FHA Partial Claim, addressing their immediate financial challenges effectively