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For which loss mitigation option would this unemployed client be approved if she has an FHA loan?

A- Standalone Partial Claim
B- Special Forbearance - Unemployment Agreement
C- FHA-HAMP Loan Modification
D- Freddie Mac Flex Modification

1 Answer

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Final answer:

The most appropriate option for an unemployed client with an FHA loan is the Special Forbearance - Unemployment Agreement, which suspends or reduces payments temporarily. Other options like Standalone Partial Claim and FHA-HAMP Loan Modification require the borrower to be employed and differ in terms of the assistance they provide.

Step-by-step explanation:

For an unemployed client with an FHA loan, the most appropriate loss mitigation option is likely the Special Forbearance - Unemployment Agreement. This program is designed to help borrowers who are temporarily out of work by suspending or reducing mortgage payments for a specified period.

The Standalone Partial Claim could also be an option, but it typically comes into play when a borrower is able to resume their regular mortgage payments but is not able to catch up on past dues in a lump sum. An FHA-HAMP Loan Modification might be considered if the borrower is employed again but cannot make the original mortgage payments due to a permanent or long-term loss in income.

However, the borrower would not be eligible for the Freddie Mac Flex Modification, as this is a program specifically for loans owned by Freddie Mac, not FHA loans.

User Robert Houghton
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