Disputed Debt Rule Delayed By FHA

Previously, FHA announced a rule that would prevent mortgage borrowers with an outstanding collection debt of $1,000 or more from obtaining FHA financing.  The rule went into effect on the first of April.  Now, FHA has deferred the effective date of the rule until July 1, 2012.

The old guidelines will apply for case numbers assigned between April 1, 2012 and April 8, 2012.  Prospective home purchasers that have outstanding collection debt should be made aware of these changes by their real estate professional and their mortgage loan officer. 

Iceland Poppy, Kentlands Spring Flowers IMG_7900

Photograph by Roy Kelley using a Canon PowerShot G11 camera.

Roy and Dolores Kelley Photographs

We represent home buyers and sellers as their exclusive agents in the Maryland suburbs of Washington DC. 

Roy Kelley
Roy Kelley & Associates
Associate Broker, RE/MAX Realty Group 

Client Assistance:  301-670-8996   

Recipient of the RE/MAX International Lifetime Achievement Award - 2008

 
This post has been included in Maryland Real Estate News Montgomery County, MD Real Estate News
Post is included in group: Photos
Post is included in group: ActiveRainPhotoBlogger
Post is included in group: Great Shots!
Post is included in group: EXPRESS WITH PHOTOGRAPHS AT ACTIVERAIN
Post is included in group: Realtors®

8 Comments on Disputed Debt Rule Delayed By FHA

APR
10
2012
817,202 Points Outside Blog Called Shot Master

Thanks for sharing update on FHA Loan information.  Best Regards,
7:51am • #1
280,016 Points Outside Blog Attended Rain Camp Called Shot Master

Roy, Thanks for this important update. The detail on the photo is outstanding, great shot!
8:22am • #2
1,443,368 Points 26 Featured Posts Outside Blog Called Shot Master

Thanks for your comments.  Many prospective home purchasers have "collection accounts" in their credit bureau files.  Some medical accounts and student loan accounts are unpaid for years.  Sometimes, the information on the credit reports is incorrect and efforts must be taken to resolve the issues.

This rule will raise many old issues that will need to be addressed before a successful home purchase.
8:41am • #3
638,923 Points 53 Featured Posts Outside Blog Called Shot Master

Roy,  Very useful information.  Wonder why I didn't hear about this from my lender.....  Thanks for sharing.
9:19am • #4
795,932 Points Outside Blog

Good afternoon Roy.

An important update.

That is a beautiful flower.

Thank you.
11:34am • #5
705,273 Points 10 Featured Posts Outside Blog Called Shot Master

Hi Roy,

I have a quick question and I know you will know the answer.. Does the $1 K limit mean all consumer debt or just related to housing?

12:03pm • #6
1,443,368 Points 26 Featured Posts Outside Blog Called Shot Master

Thanks for your comments.  

Robert:  This rule relates to all consumer debt show in the credit report.  Outstanding collection debt of $1,000 or more can prevent approval for FHA financing.
12:31pm • #7
612,447 Points 40 Featured Posts Outside Blog Called Shot Master

Roy, I'm fairly sure we're going to hear more on this ruling shortly.  So many of those collections are so bogus or so old. I think they need to put a time limit on it - say any collection placed in the last 2 years which totals $1000 or more combined would disallow eligibility.  But, what do I know - I'm just an old FHA underwriter, LOL.  
6:08pm • #8

Login or register to leave a comment
 
Img_2076 Rainmaker_large

Roy Kelley, Montgomery County, MD Homes For Sale

Gaithersburg, MD

More about me…

Roy Kelley and RE/MAX Realty Group

Address: Roy Kelley, RE/MAX Realty Group, 6 Montgomery Village Avenue, Suite 200, Gaithersburg, MD, 20879

Office Phone: (301) 921-4569

Email Me

Roy Kelley advises home buyers, sellers and REO asset managers, in the Maryland suburbs of Washington DC and nearby counties. REO and foreclosures sales. Market area includes Montgomery County, Frederick County, Washington County and Prince George's County. Real Estate blogs


Listings

Links

Archives

RSS 2.0 Feed for this blog