We’ve been seeing a common question come up lately, so let’s break it down.
The Scenario
“There are about 5 or 6 partial claim DOTs filed—all with the same loan number and FHA number, but different amounts—on our property. Do all of those need to be attached and paid at closing, or just the final one? Will we need satisfactions for all of them?”
Short answer: it depends—but don’t assume it’s just the most recent one.
What’s Really Going On?
When you see multiple partial claim Deeds of Trust (DOTs) tied to the same loan number and FHA number, it usually means:
- There have been multiple advances or modifications over time, or
- Prior partial claims were not released or consolidated properly
Each recorded lien represents a separate obligation unless HUD has formally combined or released them.
What This Means for Closing
In most cases:
- All active partial claim liens must be addressed
- You’ll likely need:
- A payoff for each outstanding lien, and
- A recorded satisfaction or release for each one
Do not assume the latest filing replaces the earlier ones unless you have documentation confirming consolidation.
How to Get an Accurate Payoff
For HUD-held partial claim mortgages, your go-to is the FHA Resource Center:
- Phone: 1-800-CALLFHA (1-800-225-5342)
- Email: mailto:answers@hud.gov
- Portal: SMART Integrated Portal (SIP)
💡 Tip: If you’re a title company or third party, you’ll usually need to submit an authorization letter before requesting payoff information.
Payment Instructions (Important!)
HUD has very specific requirements:
- Do NOT wire funds (seriously—don’t do it)
- Payments must be mailed to:
ISN Corporation
Attn: Partial Claim Cash Management
2000 N Classen Blvd, Suite 3200
Oklahoma City, OK 73106
Any wiring instructions claiming to be from HUD are likely fraudulent.
Timing & Processing
- Allow up to 5 business days for payoff processing
- Status updates typically aren’t available until after that window
- If funds arrive after the “good through” date, per diem interest will apply
Be Prepared
When requesting payoff info, have:
- FHA loan number
- Partial claim note number (if available)
- Borrower details
- Authorization (if you’re a third party)
Need Help?
If you’ve got a closing coming up and need help navigating a partial claim payoff, we’ve got you covered.
Reach out anytime:
mailto:orders@magnoliatitlecompany.com
Got more questions like this? Keep them coming—we’re happy to break them down.