FHA Loans

If you’re having difficulty making your mortgage payments on an FHA home loan, you have several options available.*

FHA mortgage repayment plans

If your loan is past due because of a temporary financial setback, you may qualify for a repayment plan. You must be able to make the monthly loan payment and pay an additional amount toward the past-due amount each month until the loan is brought current.

Forbearance agreement

If you can’t make an FHA mortgage loan payment or you’re more than four payments behind on your loan, you may qualify for a forbearance agreement. This formal repayment plan, may extend more than three months. You’ll need to complete a Financial Analysis Form and send us copies of your last two pay stubs to verify your income.

Loan modification

If you can’t pay your past-due loan payments, but you can meet your monthly obligations, we may be able to modify your loan by adding the delinquent interest and delinquent escrow payments to your loan balance to bring your loan current. Your current mortgage interest rate must be within market guidelines. If you have any additional liens against your property, the lien holders must be willing to subordinate their interest to the new loan amount. You’ll need to complete a Financial Analysis Form and send us copies of your last two pay stubs to verify your income.

Partial claim

If you can’t pay your past due loan payments, but you can meet your monthly obligations and do not qualify for the previously mentioned programs, you may qualify for a partial claim. HUD will loan you the past due payments provided you sign an additional note and mortgage for the advance. You’re not obligated to pay on this additional loan until your first mortgage is paid in full, or you no longer occupy the property. You must complete a Financial Analysis Form and send us copies of your last two pay stubs to verify your income.

Short sale

If you wish to sell your property, but the net proceeds from the sale are not enough to pay off your loan and you can’t afford to pay the shortage, HUD may allow you to sell your home without paying the entire amount due. You’ll need to complete a Financial Analysis Form and send us a letter requesting a short sale.

Deed in lieu (DIL) of foreclosure

If you don’t qualify for any of the other previous alternatives and you don’t have any additional liens against your property, you may be able to deed the property directly to HUD to avoid foreclosure. You’ll need to complete a Financial Analysis Form and send us a letter requesting a DIL.

*Important: There may be additional qualifications not mentioned here due to space limitations. Please contact our Default Department at
1-866-350-8884 for more details.