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Partial Claim, Principal Forbearance, or Mortgage Recovery Advance

Helps you keep your home and possibly have more manageable mortgage payments.

What you need to know 

An FHA Partial Claim, FNMA Principal Forbearance, or USDA Mortgage Recovery Advance is a reimbursement of a mortgagee advancement of funds on behalf of the borrower in an amount necessary to assist in reinstating the delinquent mortgage.

How you could benefit

By having a portion of your unpaid principal balance and/or delinquent payments deferred, your monthly payment may be lowered to an amount that’s more manageable for you.

Important considerations in a FHA Partial Claim, FNMA Principal Forbearance, or USDA Mortgage Recovery Advance

  • If you make all required trial period payments, return the necessary agreements timely, and continue to meet all requirements, you will receive a partial claim mortgage that places an additional lien on your property due and payable at the earliest of:
    • The maturity date
    • The interest-bearing balance of your loan has been paid off
    • The sale or transfer of your interest in the property
    • A refinance of your mortgage
  • This option may be combined with a loan modification to reach a target payment based on your gross income.
  • Most insurers also require a review of your gross/net income as well as expenses to determine if the payment adjustment will be affordable moving forward.  

How your credit may be affected 

During the trial period your credit score may be negatively impacted, particularly if your payments are not current. However, “Paying under a Partial or Modified Agreement” may be less negative than an ongoing series of late payments or foreclosure.