Document-level guide to HUD Partial Claim Note and Subordinate Mortgage execution: recording, model-form caveats, witnesses, repayment triggers, and notarization-only limits.
Published and reviewed by iRemoteNotary
Last reviewed September 21, 2026
Review the prepared documents. Current HUD model Partial Claim packages distinguish a promissory Note (promise to pay the Secretary) from a Subordinate Mortgage / security instrument that must be prepared and recorded. Notarial requirements are not identical for every page, and mortgagees must adapt models for state and local law.
Do not assume every Partial Claim needs two witnesses, and do not assume the note always requires notarization unless your prepared certificate says so.
RAP remains DRAFT / NOT CURRENT POLICY (RAP_DRAFT_MONITOR = true).
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.
| Document | Role |
|---|---|
| Partial Claim promissory Note | Borrower’s promise to pay the Secretary; model face uses borrower signature/seal lines |
| Subordinate Mortgage | Security instrument securing the Note; prepared and recorded; model includes witness placeholders that may be omitted where law does not require witnesses |
| Model status | HUD still lists FHA-HAMP Partial Claim Note and Subordinate Mortgage (6/15); packages may include jurisdiction-specific modifications |
| Payment Supplement | Related but separate document set (Note, Agreement rider, Subordinate Mortgage) when that option is used |
For how Partial Claim fits among FHA home-retention options, see FHA loan modification and Partial Claim documents. This page focuses on the note versus subordinate mortgage distinction.
The model promissory Note identifies the Borrower and the Secretary of HUD as Lender, states the principal sum, and describes when the debt becomes due—typically on the maturity of the primary insured mortgage or earlier upon events such as full payoff of the primary mortgage, acceleration, or termination of FHA insurance, as stated on the model note face.
The model Subordinate Mortgage secures repayment of that Note and conveys a security interest in the Property to the Secretary. Current HUD framework requires the subordinate Mortgage to be prepared and recorded. Calling it a “second mortgage” is incomplete unless you also explain it is a subordinate HUD lien securing the Partial Claim obligation.
Do not assume the Note and the Subordinate Mortgage require the same notarial act. The model Note uses borrower signature/seal lines. The model Subordinate Mortgage includes witness lines and states that witness lines may be omitted if state and local law do not require witnesses for mortgages.
Mortgagees must review the model and modify it for applicable federal, state, and local requirements. Your live package controls. A notary completes only the prepared certificate that matches the requested act.
Under the model Note, repayment is generally due at maturity of the primary mortgage or earlier upon specified events such as payoff of the primary obligation, acceleration, or loss of FHA insurance—follow the exact text in your package. Prepayment is generally allowed without penalty on the model note.
The notary does not explain whether accepting a Partial Claim is financially wise, calculate when you can sell, or advise on refinance payoff strategy.
Payment Supplement also uses Partial Claim authority but is documented with Payment Supplement Note, Agreement, and Subordinate Mortgage materials under current model listings—and is not simply a standalone Partial Claim or a traditional first-mortgage modification.
HUD’s RAP Demonstration draft would describe replacing note/subordinate-mortgage documentation with a RAP Repayment Agreement in some cases. That draft is NOT CURRENT POLICY. Do not treat RAP as active.
Send the unsigned final Note and Subordinate Mortgage pages exactly as prepared, and confirm any witness or RON instructions with your mortgagee.
Review the prepared certificates. The documents serve different roles: the Note is the promise to pay; the Subordinate Mortgage is the recorded security instrument. Notarial and witness requirements can differ and may be adapted for state law.
No. HUD’s model subordinate mortgage states witness lines may be omitted where state and local law do not require witnesses. Follow your prepared instrument and mortgagee instructions.
Not as a universal rule based on the model Note face alone. Use the certificate language in your live package.
No. RAP remains DRAFT / NOT CURRENT POLICY as of this source review.
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.
FHA-HAMP Partial Claim Note and Subordinate Mortgage (model, 6/15)(opens in a new tab)
U.S. Department of Housing and Urban Development
Accessed September 21, 2026
U.S. Department of Housing and Urban Development
Accessed September 21, 2026
SFH Handbook 4000.1(opens in a new tab)
U.S. Department of Housing and Urban Development
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-prepared Partial Claim Note or Subordinate Mortgage requires a notarial act, confirm instructions and start with the unsigned final forms.