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FHA Announcement Brings New Opportunity to Boomerang Buyers in Berkeley
Great News for Boomerang Buyers!
According to new Mortgagee Letter 2013-26, HUD announced:
As a result of the recent recession many borrowers who experienced unemployment or other severe reductions in income, were unable to make their monthly mortgage payments, and ultimately lost their homes to a pre-foreclosure sale, deed-in-lieu, or foreclosure. Some borrowers were forced to file for bankruptcy to discharge or restructure their debts. Because of these recent recession-related periods of financial difficulty, borrowers’ credit has been negatively affected. FHA recognizes the hardships faced by these borrowers, and realizes that their credit histories may not fully reflect their true ability or propensity to repay a mortgage.
The “Back to Work – Extenuating Circumstances” program is designed to help Boomerang buyers who have experienced short sale, foreclosure, bankruptcy, loan modification, or other derogatory credit event, can now qualify in 12 months. This provision waives the three year waiting period FHA had in place prior to this announcement. Again this is great news for Boomerang Buyers as the program is here through September 2016!
FHA is allowing for the consideration of borrowers who have experienced an Economic Event and can document that:
• Certain credit impairments were the result of a Loss of Employment ... more
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