New FHA Rules give hope for Mortgages after Bankruptcy
Posted on Sep 23, 2013 in Foreclosure - Saving Your Home, Mortgage Foreclosure Defense, Mortgage Modifications, Real Estate
If you filed bankruptcy through no fault of your own, or if you suffered a foreclosure for reasons beyond your control, it is now possible to get an FHA insured loan.
You can get a new mortgage one year after bankruptcy or foreclosure if you can show you had a big cut in pay, a big decline in your business income or became unemployed for no fault of your own. And as in the past, you can be eligible if you suffered a medical emergency or recently became a widow or widower.
You can’t get on this fast track to a new mortgage if you quit your job, or if you were fired for cause.
The new FHA policy is much more liberal than the harsh policies of Fannie Mae and Freddie Mac. These agencies require a waiting period of 3 years after completion of a foreclosure or discharge from bankruptcy if there are “extenuating circumstances” and up to a seven year waiting period otherwise.
There are many bogus sources for FHA financing. However, you can find many answers to your questions about FHA loans at http://portal.hud.gov/hudportal/HUD?src=/FHAFAQ. You can also find an FHA approved lender at http://www.hud.gov/ll/code/llslcrit.cfm
To qualify for a mortgage after bankruptcy or to qualify for a mortgage after foreclosure, it’s very important that a bankruptcy case or the foreclosure case to be completely closed. Lenders frequently fail to complete a foreclosure, especially for condominiums and homes with a home owner association because they don’t want to assume the costs of home-ownership. This leaves the owner stuck holding the bag. It also leave the owner ineligible to look for a new mortgage.
Lakelaw has developed innovative tools to force lenders to take action to conclude a foreclosure case and allowing borrowers to have a fresh start.
We at Lakelaw value our former clients and friends and hope you gain value from our periodic messages to you about developments in bankruptcy and foreclosure.
We especially appreciate your referrals of friends, family members and others you know who can benefit from our services. Thank you for your continued interest in and support of Lakelaw – your financial lifesaver ™ We continue to represent people and businesses in bankruptcy and foreclosure defense in Illinois and Wisconsin. We do so with care, kindness, courtesy, respect, professionalism and dedication. And we always will.