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FHA Waives Foreclosure, Short-Sale, and Bankruptcy Waiting Periods
On August 15, 2013, though, the Federal Housing Administration (FHA) moved to relax its guidelines for borrowers who “experienced periods of financial difficulty due to extenuating circumstances”. Dubbed the “Back to Work – Extenuating Circumstances Program”, FHA has now removed the familiar waiting periods that typically followed a derogatory credit event
With this change, FHA has taken a giant step forward, by acknowledging that the Great Recession that started in late 2007, and lasted almost 5 years, forced many responsible Colorado homeowners into mortgage loan default and/or bankruptcy, and realizes that sometimes, certain events may be beyond one’s control.
Ex-Homeowners, who lost their homes to a short-sale, deed-in-lieu, foreclosure, and/or had to claim bankruptcy because of an extenuating circumstance, or circumstances, are now eligible to purchase a new home in as little as 12 months after a one or both of these events, and FHA has confirmed that they will waive their waiting requirements of 3 years for a foreclosure related (short-sale and deed-in-lieu) event, and 2 years for someone who discharged their debts via a bankruptcy.
FHA “Back To Work” Program Becomes Official
With this new program, FHA is committing to fully evaluate mortgage applicants who have experienced periods of financial difficulty due to extenuating circumstances. As a result of the recent recession many Colorado homeowners who experienced unemployment or other server reductions in personal income, were unable to make their monthly mortgage payments, and in many instances, this led to losing their homes to a pre-foreclosure short-sale, deed-in-lieu, or foreclosure.
More: http://www.homeownersblueprint.com/fha-waives-foreclosure-short-sale-and-bankruptcy-waiting-periods/
With this change, FHA has taken a giant step forward, by acknowledging that the Great Recession that started in late 2007, and lasted almost 5 years, forced many responsible Colorado homeowners into mortgage loan default and/or bankruptcy, and realizes that sometimes, certain events may be beyond one’s control.
Ex-Homeowners, who lost their homes to a short-sale, deed-in-lieu, foreclosure, and/or had to claim bankruptcy because of an extenuating circumstance, or circumstances, are now eligible to purchase a new home in as little as 12 months after a one or both of these events, and FHA has confirmed that they will waive their waiting requirements of 3 years for a foreclosure related (short-sale and deed-in-lieu) event, and 2 years for someone who discharged their debts via a bankruptcy.
FHA “Back To Work” Program Becomes Official
With this new program, FHA is committing to fully evaluate mortgage applicants who have experienced periods of financial difficulty due to extenuating circumstances. As a result of the recent recession many Colorado homeowners who experienced unemployment or other server reductions in personal income, were unable to make their monthly mortgage payments, and in many instances, this led to losing their homes to a pre-foreclosure short-sale, deed-in-lieu, or foreclosure.
More: http://www.homeownersblueprint.com/fha-waives-foreclosure-short-sale-and-bankruptcy-waiting-periods/
Not that I'm ready to buy again, but this is a relief for many foreclosed families around the country.
Thank you Obama Administration.
1 replies
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