Recently, the Federal Housing Administration moved to relax its guidelines and expedite the waiting period to secure a mortgage for borrowers who “experienced periods of financial difficulty due to extenuating circumstances”. The program exemplifies the FHA’s willingness to help those who have endured a financial situation beyond their control. The program is generally known as the “Back to Work Program” and has assisted consumers securing a mortgage one year after the following economic hardships:
Chapter 7 bankruptcy
Chapter 13 bankruptcy
In order to qualify, the mortgage applicant must meet several minimum eligibility standards. The first is that you must have experienced an “economic event” (e.g.; pre-foreclosure sale, short sale, deed-in-lieu, foreclosure, Chapter 7 bankruptcy, Chapter 13 bankruptcy, loan modification, forbearance agreement). The second is that the applicant must demonstrate a full recovery from the event. Third, the applicant must agree to complete housing counseling prior to closing a “Back to Work Loan.”
The above mentioned program may be a strong option to help a consumer who has endured a financial hardship to once again enjoy pride of home ownership and obtain such ownership on an expedited track. Such a program has the potential to stimulate the housing economy by creating more demand for the purchase of residential housing. As a lawyer that regularly helps those in financial distress, I am eager to advise my clients about this potential option.
Should you have any questions regarding the aforementioned blog entry or if you have any questions regarding Bankruptcy and/or Family Law, please do not hesitate to contact the lawyers at Sadek and Cooper.
To speak with one of our lawyers regarding your financial situation, please contact one of our conveniently located law offices listed below.
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