A Partial Claim was executed two years ago, now the mortgagor has re-defaulted on the loan, will HUD subordinate the Partial Claim so the mortgagee can complete a Loan Modification?

Yes, HUD will subordinate the Partial Claim so the mortgagee can complete the Loan Modification. The mortgagee should contact HUD's contractor at (866) 377-8667 to ascertain all language requirements and terms that must be evident within the subordination document. Question 7: Regarding the five (5) business day submittal for recordation and the 60-days from date of execution for filing the claim criteria stipulated in Mortgagee Letter 2003-19, what are the procedures for those Partial Claim properties in jurisdictions that require execution of the subordinate agreement by a HUD official and is there any situation where it would be appropriate for a mortgagee to exceed the five (5) business day requirement?

Answer: Mortgagee Letter 2003-19, dated November 20, 2003, states: "O. Recordation Requirements Upon execution of a partial claim by a mortgagor, the Department requires that the partial claim security instruments be submitted for recordation to the appropriate jurisdiction within ... more.

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