Borrowers are eligible for a new FHA-insured mortgage if;
1. they were current on their mortgage and other installment debts at the time of short sale on their previously owned home, AND
2. the proceeds of the short sale serve as payment in full.
Borrowers are not eligible for 3 years following the date of the short sale if;
1. they were simply taking advantage of declining market conditions, AND
2. are looking to purchase, at a reduced price, a similar or superior property in same area.
3. if they were in default on their mortgage at the time of short sale.
Exceptions may be made to this rule if;
a. the default was due to circumstances beyond borrower's control (death of primary wage earner, long term uninsured illness, etc.), AND
b. review of credit report satisfactory credit prior to the circumstances that caused the default.
As always, guidelines will be made clearer as lenders introduce this announcement to their programs. We will continue to keep you updated.
For official announcement from HUD click on link below.
Certified Foreclosure Specialist CFS
REO Default Certified Professional
Keller Williams Integrity First Realty
2836 North Power Road Suite 114
Mesa, Arizona 85215
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