FHA Mortgages After Bankruptcy or Foreclosure
The FHA recently released a letter stating that it was reducing the waiting period to get an FHA mortgage after a bankruptcy or foreclosure, to 1 year. This is a big deal because the waiting period had been two years after bankruptcy and three years after the completion of a foreclosure.
However, not everyone will qualify. Borrowers will be required to prove that their household income fell by 20 percent or more for at least six months. That the decrease in income was because of unemployment or another event beyond their control. That they have now recovered and reestablished their credit by making at least 12 months of on-time payments on debts such as a mortgage, rent, or credit account.
Long Island Foreclosure Defense Attorneys
The Law Firm of Vaughn, Weber & Prakope, PLLC is here to assist you. We can be reached at (516) 858-2620.