Yes, this is akin to the FHA partial claim. This used to be unallowed for loan modifications, but that has changed in the “modernization” of FHA. The FHA originated loan is supposed to be interest-free, but I thought it was a separate lien (secured) on the property.
Of course, conventional lenders have been offering the unsecured loan on the arrears as part of their loan “modifications” under the HOPE Now and Project Lifeline operations. It’s not far fetched to see FNMA partaking.
There should be some uproar from consumer advocacy groups pretty soon about these horrible loans. It’s just plain preying on the desperate.
