Buyers with Foreclosure Eligible to Buy after 1 Year

As a result of the recent great recession many borrowers experienced unemployment or other severe reductions in income that caused them to lose 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 have been negatively affected.

 Help is here! As of August 15th, 2013, FHA is allowing borrowers who have experienced an Economic Event and can provide the proper documentation to verify that event, to be eligible to buy again in one year after the event.

What Are Documented Events:

• Certain credit impairments were the result of a Loss of Employment or a significant loss of Household Income beyond the borrower's control;
• The borrower has demonstrated full recovery from the event; and, 
• the borrower has completed housing counseling.  

Borrowers will have to show that they experienced an "economic event" and their household income fell by 20% or more for a period of at least six months. They must also demonstrate that they have fully recovered from the event, and have previously attended Homebuyer Counseling at least 30 days prior to the application, but no more than 6 months.

More qualified buyers is great news for the real estate community. Call me for more details at 614.388.8757