How to Qualify for a HUD Mortgage Assignment

Learn the criteria for applying for the HUD mortgage assignment program.

The U.S. Department of Housing & Urban development (HUD) offers a HUD Mortgage Assignment program to help homeowners avoid foreclosure and refinance their mortgage. In order to qualify for the program, HUD uses a set of six criteria to make a decision. According to HUD, the six criteria are the only basis of whether or not an applicant qualifies and include: the mortgagor has foreclosure notification from the lender; the mortgage is at least three months past due; it is a primary residence; the applicant doesn't have other mortgaged property; extenuating circumstances caused the foreclosure issue; it is reasonable that the borrower will resume full mortgage payments in the future.

Instructions

1. Confirm the foreclosure status. Make sure that you have the notice from your mortgage lender stating that the lender has begun foreclosure proceedings against your home.

2. Identify how many months past due your mortgage is. Gather your mortgage statements or letters from the mortgage lender trying to collect your back mortgage payments on how many months past due you are. Confirm that you are at least three full months behind on your mortgage. If you have made partial payments on the mortgage in the past three months, this can disqualify you from qualifying for the HUD mortgage assignment.

3. Clarify the home status. According to IRS declarations and the mortgage application, confirm that the home is listed as your primary or principal residence. A primary or principal residence is the home you occupy full time. If you own another home with a mortgage that is not in foreclosure, this can disqualify you from approval in the program as well.

4. Gather proof of the financial hardship. Financial hardship may include the death of a primary breadwinner, loss of a job or a major illness, which caused such as financial burden that you can no longer afford to make your mortgage payment.

5. Provide proof of the ability to pay the mortgage again in the future. This may include tax documents or paycheck stubs. Since the mortgage assignment helps you to refinance the mortgage into a more affordable condition with lower payments, providing this information helps the agency to determine how much of a mortgage payment you can afford to make on the home.

Tips & Warnings

• You can apply for a HUD mortgage assignment if your mortgage lender recommends you or you apply to HUD directly.

References

• HUD: Mortgage Assignment Eligibility Criteria
• HUD: Mortgage Assignment Application