I’m looking for some advice on what to do in this situation. I own a 2 story condo (purchased in 2016) that I am not currently living in. My FHA mortgage has been in forbearance since 6/1/21 and is ending 11/30/21. I have 3 available options for ending the forbearance:
Partial Claim: Interest free junior lien that isn’t due until the mortgage matures, is paid off, or the house is sold. Total missed amount: $19,134.87 – this would be the amount of the partial claim. Recovery Modification: brings the account current by modifying the terms of the loan and reducing the monthly payment. My loan servicer doesn’t make it clear what the terms of the modification would be – I imagine it would be 360 months (30 years), and possibly a lower interest rate? Recovery Non-Occupant Modification: brings the account current by modifying the terms of the loan. Any amounts owed are added to the loan balance. Loan term will be extended and rate will be reduced. **I’m not sure how this option is any different from the normal modification…**
I am looking to rent this property out after the forbearance is over.
Can someone help to explain these three options a little bit? I’m not sure what I should do. I think I’d like for the normal mortgage payments to resume, and the $19,134.87 be added onto the loan. What would the difference in having that amount in a junior lien (partial claim) VS. modifying the loan? And is there anything to gain/lose by going the Non-Occupant modification route?
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