The U.S. Department of Housing and Urban Development (HUD) recently announced the â€œBack to Work â€“ Extenuating Circumstancesâ€ program, aimed to help people who have lost their home through foreclosure, short sale or bankruptcy. HUD has reduced the previously required minimum of 36 months to 12 months before they may be able to finance another home, given that they meet HUDâ€™s minimum eligibility requirements.
A Chapter 7 bankruptcy (liquidation) does not disqualify a borrower from obtaining an FHA-insured mortgage if at least two years have elapsed since the date of the discharge of the bankruptcy. During this time, the borrower must have re-established good credit, or chosen not to incur new credit obligations. An elapsed period of less than two years, but not less than 12 months, may be acceptable for an FHA-insured mortgage, if the borrower can show that the bankruptcy was caused by extenuating circumstances beyond his/her control, and has since exhibited a documented ability to manage his/her financial affairs in a responsible manner.
Bankruptcy (Chapter 7 or Chapter 11) A four-year waiting period is required, measured from the discharge or dismissal date of the bankruptcy action. Exceptions for Extenuating Circumstances A two-year waiting period is permitted if extenuating circumstances can be documented, and is measured from the discharge or dismissal date of the bankruptcy action.
It thrills me to see the " I CAN" in my fellow Americans.. in my opinion, your attitude is what makes America Strong.
First and Foremost, CREDIT,, as in re-establish your credit. - DO NOT buy a car or jewelry or any sort of FIXED loan to re-establish credit... this is the ABSOLUTELY, POSITIVELY wrong way to go about it, to get fast results. Call me, and I'll provide you the sure fire and acceptable method.
Secondly - WAITING PERIOD- The variables of 1) amount of money you have to put down AND
2) your re-established credit - will yield you approval to different loans and loan terms.... which can vary from bank to bank.
If you like, I can give you the personal guidance and coaching you'll need to best position yourself for your purchase, in the least amount of time. - I don't do loans, but got my start in the industry as a loan officer. I will gladly direct you to the right lenders with the right programs for your situation.
Have questions ? Want to get started ?
My Direct Number : 714-363-8425 ( I am based in Riverside )
Most Kindest Regards,
PROVIDENT REAL ESTATE
Chase Bank Preferred Agent 2008, 2009, 2010, 2011
Short Sale & Pre-Foreclosure Certified *
REO Buyer Agent & Distressed Property Certified
DRE LIC 01708214
One Client, One Friend, One Dream Home At A Time...
You may also want to check with a local credit union what their policies would be for your situation. Patrick outlines below what the industry standards are through the main mortgage players, but it doesn't hurt to touch base with a credit union to see if they are doing something a little bit different than the big banks.
Best of luck,
Julie A. Horvath
555 Metro Place North, Suite 320
Dublin, OH 43017
NMLS ID: 563029