Post Foreclosure and Short Sale Home Buyers Get A Break From FHA

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Post Foreclosure and Short Sale Home Buyers Get A Break From FHA


Before last week, prospective home buyers that have gone through a foreclosure or short sale generally had to wait at least three years before they could get an FHA loan to purchase another home. FHA has reduced the minimum waiting period to one year for borrowers that meet certain requirements.

In order to qualify for new FHA financing, home buyers must demonstrate that the foreclosure or short sale was caused by unemployment or “economic event” that caused a substantial reduction in their household income.

Prospective home buyers that have been through bankruptcy, a foreclosure or short sale are advised to meet with a trusted mortgage loan officer to develop a plan of action that will lead to the renewed ability to obtain mortgage financing.



Rose, Lewis Ginter Botanical Garden IMG_8847

Photograph by Roy Kelley using a Canon PowerShot G11 camera. 

Roy and Dolores Kelley Photographs

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Roy and Dolores Kelley Photographs

Roy Kelley and Associates


Roy Kelley, Associate Broker

Realty Group Referrals (Retired from RE/MAX Realty Group)

6 Montgomery Village Ave., Suite 200

Gaithersburg, MD 20879

Main Office:  301-258-7757 (You will not reach me at this number)

Send an email message if you need my phone numbers. I will be happy to recommend a real estate professional if you are moving to the area.


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Barbara Hensley
RE/MAX Properties - Rockwall, TX
Homes for Sale in Rockwall County, Texas

Roy, I have noticed that the guidelines have changed and this is great information. 

Aug 20, 2013 04:42 AM #1
Don Eichler
Eichler Properties - Granbury, TX
Thanks for the information.
Aug 20, 2013 11:05 AM #2
Kristin Hamilton CA Realtor
Sun Lakes Realty - Banning, CA
(909) 557-6966- Specialize 55+ Communties Banning

Hi Roy,

I knew this was coming but hopefully people will be more careful the next time they buy.

Aug 20, 2013 04:58 PM #3
Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

I have two application in place for clients in this situation. The loan volume for FHA has dropped dramatically over the last few months, this change may build up the volume again.

Aug 20, 2013 06:51 PM #4
Conrad Allen
Re/Max Professional Associates - Webster, MA
Webster, Ma, Realtor

Hi Roy.  FHA is becoming irrelevant in the mortgage business.

Aug 20, 2013 08:24 PM #5
Clint Mckie
Desert Sun Home, commercial Inspections - Carlsbad, NM
Desert Sun Home, Comm. Inspection 1-575-706-5586

Hi Roy,

Good news for those buyers who are or were on the cusp of just being there for a home purchase.

Good news for evey one in the business.

Have a good day in Gaithersburg.

Best, Clint McKie

Aug 20, 2013 08:26 PM #6
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Yes, Roy, a welcome break for those that have gone through some difficult times due to hardships.

Aug 20, 2013 08:46 PM #7
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Thank you very much for your comments. It is always good to hear from you. Today is my birthday so I am going to take a little time to celebrate life.


Rose, Lewis Ginter Botanical Garden IMG_8845

Photograph by Roy Kelley using a Canon PowerShot G11 camera.


Roy and Dolores Kelley Photographs

Aug 20, 2013 08:48 PM #8
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Roy, is it a coincidence that my first post with a photograph will be on your birthday? Happy Birthday, enjoy it!

Aug 20, 2013 09:11 PM #9
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Thank you for the information. I will share it with others.

Happy Birthday. Have a great day.

Aug 20, 2013 09:18 PM #10
Anita Clark
ColdwellBanker SSK Realtors ~ 478.960.8055 - Warner Robins, GA
Realtor - Homes for Sale in Warner Robins GA

Happy Birthday Roy!  This FHA change should bring new opportunities for those that qualify. 

Aug 20, 2013 09:31 PM #11
Toni Weidman
Sailwinds Realty - Trinity, FL
20+ Years Selling Homes in New Port Richey, FL

Great information as usual, Roy. And a very happy birthday to you! Hope you have something fun on the schedule today.

Aug 20, 2013 10:12 PM #12
Myrl Jeffcoat
GreatWest Realty - Sacramento, CA
Greater Sacramento Real Estate Agent

I had also wrote about this development on my blog yesterday!  Steven Cook, a lender, was one who commented.  He said, "It is not a complete waiver of waiting period, there is still a 12 month wait period after the date of the event (foreclosure, short sale, bankruptcy), during which any credit is being handled appropriately."

Aug 21, 2013 10:17 AM #13
Kristal Wilson
Strategic Sales and Marketing - Chino Hills, CA
Cause We Like 'Em New ~ New Home Specialist!

Roy ~ The FHA changes have been big news in our area as "rebound buyers" are following the criteria to qualify for homeownership once again. Happy Birthday!

Aug 22, 2013 02:57 AM #14
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Thanks for your feedback. The FHA changes will help many families.

Aug 22, 2013 03:22 AM #15
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Dolores is heading to the golf course this morning and is hoping to finish a round before the afternoon thunderstorms that are predicted.

Aug 11, 2017 06:01 AM #16
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