Partial Claim

A partial claim is a way to use mortgage insurance to help a struggling homeowner avoid foreclosure. The mortgage servicer makes a claim against the mortgage insurance for the amount of any missed mortgage payments, and the insurer sets aside the money in a separate account. Then, when the borrower refinances the mortgage, sells the home, or otherwise terminates the mortgage, the partial claim amount is paid out to the mortgage servicer. Sometimes, the partial claim amount does not cover the full amount of the missed payments, and in those cases the borrower must pay the difference.

A Partial Claim is FHA’s reimbursement of a Mortgagee advancement of funds on behalf of the Borrower in an amount necessary to assist in reinstating the Delinquent Mortgage and, where applicable, a principal deferment.