Great news in mortgagee letter from HUD EFFECTIVE 8-16-2013.
You may qualify FHA only 1 year from BK, short sale, foreclosure, deed in lieu.
FHA is continuing its commitment to fully evaluate borrowers who have experienced periods of financial difficulty due to extenuating circumstances.
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.
To that end, 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 or a significant loss of Household Income beyond the borrowers control.
- the borrower has demonstrated full recovery from the event; and, the borrower has completed housing counseling.
Housing counseling is an important resource for both first-time home buyers and repeat home owners. Housing counseling enables borrowers to better understand their loan options and obligations, and assists borrowers in the creation and assessment of their household budget, accessing reliable information and resources, avoiding scams, and being better prepared for future financial shocks, among other benefits to the borrower.
The guidance in this ML is effective for case numbers assigned on or after August 15, 2013 through September 30, 2016.
mtgee letter 13.26 extenuating circumstances
INQUIRE ON QUALIFYING WITH SPECIAL CIRCUMSTANCES
SHERYL ARNDT 760-486-4225
YOU MAY QUALIFY ONE DAY AFTER SHORT SALE, FORECLOSURE OR DEED IN LIEU WITH 20% DOWN FROM MINIMUM 660 FICO SCORE - INQUIRE NOW...
Sheryl Arndt, Real Estate Broker - Sr. Loan Officer CA only
REO & Short Sale Specialist
Credit Repair At No Cost
ALL Loan Programs Available
20+ Years Experience
9am till 7pm Monday thru Saturday, Sunday my appts