Fulfilling The Hope for Homeowners Mortgage Obligations

FHA will provide instructions to the settlement agents regarding subordinate lien holders who are entitled to a portion of any appreciation. The lien holder that previously held the highest priority will receive payment up to the full dollar amount of its interest, not to exceed the amount of available appreciation, and so on, until all prior lien holders are satisfied or the amount of available appreciation is exhausted.

All remaining appreciation is remitted to FHA.

In instances where the homeowner failed to make the first payment on their new Hope For Homeowners mortgage, the H4H statute prevents FHA from paying claim benefits to anyone holding the mortgage.

People also read:

• How The Hope for Homeowners Works

• The Hope for Homeowners Cost-Benefit Analysis

• Negotiations Between Borrowers and Lien Holders

• Originating an The Hope for Homeowners Mortgage

• Fulfilling The Hope for Homeowners Mortgage Obligations

By HUD