Maps FHA home-retention document packages: loan modification, Partial Claim subordinate obligation, combination structures, and Payment Supplement—plus notarization-only boundaries.
Published and reviewed by iRemoteNotary
Last reviewed September 21, 2026
It depends on the FHA home-retention option your mortgagee offers. Current FHA loss-mitigation structures include a Standalone Loan Modification, a Standalone Partial Claim, a Combination Loan Modification and Partial Claim, and a Payment Supplement. Each uses different documents. Not every page requires notarization.
Your mortgagee/servicer—not the notary—determines eligibility and prepares the package. A Partial Claim is generally an interest-free subordinate obligation, not “free money.”
RAP_DRAFT_MONITOR: HUD’s Reinstatement Advance Payment (RAP) Demonstration remains DRAFT / NOT CURRENT POLICY and must not be treated as available borrower procedure.
iRemoteNotary does not negotiate, arrange, approve, recommend, or obtain loan modifications. We perform notarial acts and signing support for completed documents prepared or authorized by a lender, mortgage servicer, attorney, title company, or other authorized party.
| Option | What it generally does |
|---|---|
| Standalone Loan Modification | Permanently changes one or more terms of the first mortgage |
| Standalone Partial Claim | Places eligible amounts into an interest-free subordinate HUD obligation |
| Combination | Uses both a modification of the first mortgage and a Partial Claim |
| Payment Supplement | Uses Partial Claim authority to cure delinquency and temporarily reduce payments (commonly described as a three-year MoPR period)—not the same as a traditional first-mortgage modification |
This page is a router for FHA loss-mitigation document types. It does not recommend which option you should accept. For the Partial Claim note and subordinate mortgage specifically, see FHA Partial Claim note and subordinate mortgage signing guide.
A standalone loan modification changes terms of the existing FHA-insured first mortgage. Borrowers typically sign modification agreements prepared by the mortgagee under Handbook 4000.1 servicing rules.
A standalone Partial Claim generally advances funds to bring the mortgage current (and, where applicable, provide principal reduction) and documents that advance with Partial Claim promissory Note and Subordinate Mortgage instruments in favor of the Secretary. It is not principal forgiveness simply because interest is not charged on the Partial Claim note under standard model terms.
A combination Loan Modification and Partial Claim uses both tools: the first mortgage terms may change, and a separate Partial Claim obligation may also be created.
Payment Supplement uses Partial Claim authority to bring the mortgage current and then temporarily reduce the monthly principal-and-interest payment for a defined Payment Supplement Period (HUD materials describe a 36-month Monthly Principal Reduction structure). Payment Supplement documentation includes a Payment Supplement promissory Note, Payment Supplement Agreement (rider), and Payment Supplement Subordinate Mortgage under current model-document listings—not a generic “ordinary modification” of first-mortgage terms alone.
Borrowers often ask why loss mitigation creates another lien. In the current Partial Claim framework, the subordinate mortgage secures repayment of amounts advanced for the borrower and is recorded to protect that obligation. Lien priority and exact instrument labels (mortgage / deed of trust / security instrument) follow HUD model documents as adapted for state law.
Do not casually call every Partial Claim a “second mortgage” without the subordinate-HUD-lien context. Document-level signing details are covered on the Partial Claim note page.
Not every document in an FHA loss-mitigation package requires a notarial act. Review each prepared certificate. The mortgagee determines loss-mitigation eligibility and document set. The notary does not select among Standalone Modification, Partial Claim, Combination, or Payment Supplement.
HUD has published a DRAFT Reinstatement Advance Payment (RAP) Demonstration mortgagee letter that, if finalized, would describe an alternative to separate Partial Claim note and subordinate mortgage documentation for some cases. As of this review, RAP remains DRAFT / NOT CURRENT POLICY and cannot be used as current borrower procedure for FHA-insured mortgages.
Do not assume HUD has already eliminated Partial Claim notes and subordinate mortgages. Source-currentness monitoring flag: RAP_DRAFT_MONITOR = true.
Send the unsigned final documents and confirm which loss-mitigation forms require a notarial act and whether RON is permitted.
No. Under current FHA Partial Claim documentation, amounts are generally evidenced by an interest-free promissory note secured by a subordinate mortgage and become payable upon specified events such as payoff, sale, or certain other triggering events described in the note—not a gift.
No. Payment Supplement uses Partial Claim authority to cure delinquency and temporarily reduce payments for a defined period. It is not simply the same as permanently modifying first-mortgage terms alone.
No. HUD’s RAP Demonstration materials reviewed for this article remain DRAFT / NOT CURRENT POLICY.
No. Notarization depends on the prepared certificates and applicable law. Review the packet your mortgagee sent.
No. iRemoteNotary does not negotiate, arrange, approve, recommend, or obtain loan modifications. We perform notarial acts and signing support for completed documents prepared or authorized by a lender, mortgage servicer, attorney, title company, or other authorized party.
The following primary sources support the legal and procedural information in this guide. Requirements can change, so confirm current rules with the receiving organization before relying on a notarized document.
SFH Handbook 4000.1(opens in a new tab)
U.S. Department of Housing and Urban Development
Accessed September 21, 2026
Single Family Housing Model Documents(opens in a new tab)
U.S. Department of Housing and Urban Development
Accessed September 21, 2026
Payment Supplement (ML 2024-02)(opens in a new tab)
U.S. Department of Housing and Urban Development
Accessed September 21, 2026
What is a mortgage loan modification?(opens in a new tab)
Consumer Financial Protection Bureau
Accessed September 21, 2026
Draft ML — Reinstatement Advance Payment (RAP) Demonstration(opens in a new tab)
U.S. Department of Housing and Urban Development
Accessed September 21, 2026
If your mortgagee sent final FHA modification or Partial Claim papers that require notarization, confirm execution instructions, then start with the unsigned packet.