FHA insurance payoff on loan default

[Mike Luzzo]

HO has an FHA financed loan that is going into default. They have a MMIP of $81.45 for 13 years! Ouch! They are into the loan for 12 months so far.

2 questions here:

1. Will FHA payoff the loan default similar to a Private Mortgage Insurer?

2. Could the HO be on the hook for the remaider of te balence of the insurance premium? Approx: $11,728?

Thanks to all!