Home Buying in Atlanta>Question Details

Jonathan Gray, Home Buyer in Hampton, GA

FHA eases rules for borrowers with previous foreclosure?

Asked by Jonathan Gray, Hampton, GA Fri Sep 20, 2013

I recently read an article discussing FHA easing the waiting period from 3 years to 1 year for those with a previous foreclosure. How can I check to see what my official foreclosure date was (USDA Loan) and to see if I might be eligible for a FHA loan based on the new guidelines? My foreclosure was the result of being laid of by my employer at the time while out on a work place injury. I did receive unemployment benefits from the state (not fired for cause) and ultimately settled a lawsuit against my employer for their illegal termination of my employment.

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HI Jonathan,
Yes, HUD did implement a new policy in August concerning a previous Foreclosure, Short Sale, or Bankruptcy. Most county property website list sale histories for properties. The Foreclosure Date in GA is always the 1st Tuesday of each month.

If you could use a fresh start at homeownership, Prospect's Second Chanceâ„¢ program might be for you. If you lost your home to foreclosure, short-sold your home, or filed bankruptcy because of reduced income lasting over six months, you could qualify to buy again!

Second Chanceâ„¢ program benefits:

- Previous bankruptcy, foreclosures and short sales okay
- Only a 12-month waiting period
- Low down payment of 3.5%
- No income restrictions
- Gift funds permitted

To qualify, you must have experienced an "economic event," which is any occurrence beyond your control that resulted in a loss of employment, loss of income or a combination of both. The event must have caused a reduction in household income by 20% or greater that lasted at least six months or longer.

You must have recovered from the "economic event" with the re-establishment of satisfactory credit for a minimum of 12 months. You must also attend housing counseling from an approved HUD Housing Counseling Agency for a minimum of 30 days, but no more than six months, prior to submitting your loan application.

Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia with over a decade of mortgage lending experience.

Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203(k) Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | HomeStyle® Renovation | VA | USDA | GA Dream | Jumbo Financing.
1 vote Thank Flag Link Fri Sep 20, 2013
Hi Jonathan,

Since you are thinking about buying again I would suggest speaking directly with a loan officer regarding your needs. I also would recommend staying away from the big banks and deal with someone who will actually treat you like a person and not just a number.

If you would like I can recommend the perfect loan officer who has a tremendous bevy of information to give you along with your best options. Feel free to contact me anytime.

Tyler Willis, REALTOR®
Keller Williams Realty Intown Atlanta
621 North Ave NE, Suite C-50
Atlanta, GA 30308
Office: (404)541-3500
Direct: (678)656-5524
1 vote Thank Flag Link Fri Sep 20, 2013
Yes. you are correct. The Mortgagee Letter group 24,25, and 26 address the rescession, loss of jobs, poor credit and recovery. The latter being the important part. If one has experienced hardship from the rescession and had foreclosure, bankruptcy, job loss, or credit issues as a result, FHA has reduced the waiting period down to 12 months. the important part is that resolution or rebuilding has taken place. 26 is called "back to work" and speaks to the loss of job and recovery. Link for clarity. http://bit.ly/HUDml. Call me to discuss. Jay Orr LoanSouth 404-226-3178
1 vote Thank Flag Link Fri Sep 20, 2013
Hi Jonathan,

You've gotten some great info from the lenders below. I would definitely suggest you reach out to one of them to discuss your situation further. If you are looking for a Realtor, I would be happy to assist. Feel free to contact me if I can answer any questions for you.

Ava Anderson
Solid Source Realty Inc
Associate Broker
770 369-5121
0 votes Thank Flag Link Fri Sep 20, 2013
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