A partial claim is another alternative to foreclosure and is similar to a home equity loan.

The government loans you money to pay your lender for any late payments you may have on your mortgage.

A partial claim is essentially a second mortgage that you do not pay off until you sell the home or pay off your first mortgage. Housing and Urban Development (HUD), provides the loan, which is interest free.

You must not qualify for other types of assistance if you are to receive a partial claim loan from HUD.

Moreover, the loan must not be more than 365 days late to qualify for a partial claim.

In addition, the loan must be at least 120 days late to qualify for a partial claim.

To receive approval for a partial claim, you must:

1. Have sufficient income to resume paying your mortgage on time.
2. Have solved the problem that caused your default.
3. Show that a loan modification is not an appropriate solution.
4. Show that you do not have sufficient funds to repay the delinquent amount.
5. Show that you are not attempting to transfer ownership of the home or have the loan paid by someone.
6. Show the house is your primary residence.