Mortgages For Short Sales Participants FHA has announced a new underwriting standard and criteria for borrowers that would otherwise be eligible for an FHA mortgage but are ineligible due FHA’s waiting period for bankruptcies, foreclosures, deeds-in-lieu, and short-sales. The borrowers would need to document that the delinquencies are a result of a particular economic event and the borrowers would be required to complete housing counseling. An economic event is defined as any occurrence beyond the borrower’s control that results in loss of employment, loss of income or a combination of both, which causes a reduction in the borrower’s household income of twenty percent or more for a period of at least six months. The borrower must re-establish satisfactory credit for a period of at least 12 months. This program, called "Back To Work" could open up home ownership to many people that were resigned to be out of the market for three years or more. The first step, if a potential buyer thinks they might qualify, is to contact a good local lender to discuss the criteria.
Posted on: Mon, 16 Sep 2013 17:10:56 +0000
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