FHA Changes Regulations – May Allow Those Involved with Foreclosure to Become Homeowners Within One Year

Logo of the Federal Housing Administration.
Logo of the Federal Housing Administration. (Photo credit: Wikipedia)

The FHA recently announced “Back to Work – Extenuating Circumstances” which may allow those who had been involved in a short sale or foreclosure the ability to get an FHA mortgage loan as soon as one year after the event.

WHAT DOES THAT MEAN?

In addition to meeting all FHA mortgage criteria, applicants will also have to demonstrate that they experienced an economic event that was the circumstance that caused the reduction in income.  Additionally they will have to participate in specialized housing counseling and be able to demonstrate that their situation has improved and income is steady.

This is good news for people in Western MA who may have been involved in a foreclosure or short sale that was caused by a loss of work, illness, divorce or other severe circumstances.

These changes were spelled out in HUD’s Mortgagee Letter 2013-26 which you can view here.

If you live in Western MA and have been involved in foreclosure or short sale and are interested in becoming a homeowner again, please get in touch!  Lesley Lambert, Park Square Realty, 413-575-3611

 

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