Could I Purchase again after a foreclosure or short-sale?

Mortgage and Lending with Nuhome Group, LLC NMLS#:835196 - Houston Tx | Mortgage Broker| 713-373-0345 245813/835196


Could I purchase again after a foreclosure or short-sale?

As much as people think you can’t, that’s far from the truth. Good news! You absolutely can!

What Are Extenuating Circumstances?

A death in the household or a permanent disability were typically the only extenuating circumstances that could help you secure a new home loan. With the new “FHA Back To Work program”, initiated November 16, 2013, recovering homeowners can find a reasonable mortgage only 12 months after a foreclosure, without exorbitant interest rates and charges.

Homeowners are slowly emerging from economic hardship. Lenders see the past foreclosure as a huge blemish on their credit report, effectively denying them a loan. Recovering from that foreclosure has been difficult, however. With these new extenuating circumstances noted in the “FHA Back To Work program”, the hardship definition is expanded. For example, foreclosures caused by loss of employment, reduced wages or an out-of-business employer count as extenuating circumstances. With the economic world turned on its ear in 2007 and 2008, the government understands that responsible homeowners need a boost to jump-start their lives again.

Household Income Loss

Extenuating circumstances must include a 20 percent loss of household income for six months or more. To verify this loss, you can offer FHA proof of termination from your employer or a signed tax return noting your loss in that particular year. Income loss must accompany a long-term hardship to show that a foreclosure was the only choice at the time. A 20 percent income loss is roughly equal to a monthly mortgage payment, showing that you couldn’t pay the amount reasonably.

Recovery In Process

You must have proof that your household is currently recovering from financial loss. On-time payments of utilities, and other bills, are a good start. If you had a mortgage modified or altered, and show on-time payments for the past year, you can qualify for FHA Back To Work benefits. Proof of employment, such as a statement from your employer, or pay stubs extending 12 months back are good resources to reflect your recovery process. Because you can pay your bills now, after the economic problems of the past, makes you a perfect candidate for a new home loan.

Counseling Mandatory

HUD, or U.S. Department of Housing and Urban Development, offers housing counseling for those homeowners looking for Back To Work program benefits. If you have successfully recovered from a significant economic event, this housing counseling session gives you an opportunity to learn more about home loans, and your responsibilities under this new FHA loan program. After finishing the counseling session, you should be able to secure a home loan based on new FHA regulations surrounding extenuating circumstances.

Contact NuHome Group today to ask about the FHA Back-To-Work program! This new FHA program gives homeowners another chance at the American dream.



Any Questions about this subject or any questions about our loan programs please contact us at 713-373-0345 or email us


NuHome Group 713-373-0345

1445 North Loop West Suite 105 Houston, TX 77008

Frank Marta NMLS# 245813/835196


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