Repurchase Your Foreclosed Home
Previously, foreclosed homeowners who wanted to repurchase their home were required to pay the entire amount owed on the mortgage. This requirement also applied to anyone buying the home for the benefit of the previous homeowner.
However, the Federal Housing Finance Agency (FHFA) recently directed Fannie Mae and Freddie Mac to allow former homeowners, or a third-party acting on their behalf, to repurchase their foreclosed home for the fair-market value.
That’s great news, but securing financing may still be an issue for recently foreclosed homeowners. Under existing rules, former borrowers must wait a minimum of three years after a foreclosure to be eligible to receive a loan purchased or guaranteed by Fannie Mae or Freddie Mac. However, there is an exception to this rule when borrowers can document they lost their home to foreclosure or filed for bankruptcy because they were laid off or because their income was reduced by at least 20 percent. These foreclosed homeowners may now be able to get a mortgage to buy again after a one-year waiting period through FHA’s “Back to Work” lending program.
Keep in mind that foreclosure defense, loan modification, and/or bankruptcy may be better options for you. As always, if you have a question involving the above issues, don’t hesitate to call The Law Firm of Vaughn & Weber, PLLC at (516) 858-2620, to speak with an attorney.
Read more about repurchasing your foreclosed home at today’s value HERE.