I’m sure you have heard news of this by now. FHA is now allowing a buyer to purchase after a recent short sale, foreclosure , or bankruptcy. I would caution that this would be a difficult deal to close and document. These have to be looked at in depth case by case. However it’s a good opportunity to check in with past clients who you may have helped through a short sale, or with leases after a foreclosure. Again, I would be cautiously optimistic about this. If you have clients that may fit this category I would be happy to help them. Here is the general criteria that FHA is looking for: • Foreclosure – 12 months min • BK 7 –12 months min • Short sale – 12 moths min • Document all the issues were related to loss of job or reduction of income: o Must document that an economic event occurred that was beyond the Buyer’s control that results in loss of employment, loss of income or a combination of both. o Reduction of income must have been 20% or more for a period of at least 6 months. o Borrower must demonstrate that they have recovered from the economic event for at least 12 months o Borrower must have re-established credit for at least 12 months
Posted on: Tue, 27 Aug 2013 00:18:23 +0000
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