Making It Easier After A Foreclosure

In a letter just issued, the FHA has determined it will loosen the limits on borrowers who have previously had a bankruptcy, foreclosure, deed-in-lieu, or short sale. The rules will allow formerly foreclosed borrowers to get back into the market in as little as twelve months from the foreclosure. The twelve month period must evidence consistent good credit throughout this period. That can be by paying a mortgage on time, or such other obligations as rental payments. This is subject to a few qualifications. The borrowers must provide documentation that the cause of their prior credit problems was either a loss of income beyond their control or loss of employment. They must also show that the issue has since been fully remedied, and take housing counseling courses.These new lenient guidance rules cover all new FHA cases from August 15, 2013 through September 30, 2016. Questions? Contact the FHA. The web site is: www.hud.gov , and the toll free number is: (800) 225-5342. As always, Good Luck.