If the Mortgagee cannot achieve the Target Payment using the steps in Handbook 4000.1, III.A.2.iii.(C)(2)(c), then the Mortgagee must offer the Borrower the lowest monthly P&I payment achieved under the COVID-19 Recovery Modification. If the Borrower affirms that they can make the offered payment, then the Mortgagee must complete that option.
If a Partial Claim is available, the Partial Claim must not exceed 25 percent of the unpaid principal balance as of the date of Default at the time of payment of the initial Partial Claim less any previous Partial Claims paid.
- The Mortgagee must first calculate 25 percent of the unpaid principal balance as of the date of Default at the time of payment of the initial Partial Claim.
- The Mortgagee must then subtract any previous Partial Claims paid to determine the available Partial Claim amount that can be used for the COVID-19 Recovery Modification
For additional information see
- Handbook 4000.1 III.A.2.o.iii(C)(1) and (2) at: https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh
- Mortgagee Letter 2022-07 at https://www.hud.gov/program_offices/administration/hudclips/letters/mortgagee\