Anya Myer, REALTOR® and local aficionado on buying and selling real estate in the Olympia area
Monday, August 19, 2013
Second Chance for Foreclosed Home Owners
The Federal Housing Administration is giving some
former home owners another shot at home ownership. The FHA sent a letter to
mortgage lenders stating that it would offer mortgage insurance to borrowers
who once filed for bankruptcy, or who lost their homes through foreclosure or
short sale during the recession.
potential borrowers must show they can meet all other FHA requirements and that
they are no longer financially constrained. Borrowers also will have to undergo
housing counseling and FHA is requiring lenders to verify that at least a year
has passed since the foreclosure or “economic event" that caused the
foreclosure or bankruptcy.
recognizes the hardships faced by these borrowers, and realizes that their
credit histories may not fully reflect their true ability or propensity to
repay a mortgage," according to the letter FHA sent to lenders.