1 Year Waiting Period After A Foreclosure or Short Sale!
Yes, you read that correctly! Many do not know about this program offered by FHA called the “Back to Work Program.” Here is info from FHA’s Mortgagee Letter that must be met to qualify. This program is great for those in Fort Lauderdale and South Florida since we experienced so many foreclosures, short sales, and bankruptcies.
Borrowers that may be otherwise ineligible for an FHA-insured mortgage due to FHA’s waiting period for bankruptcies, foreclosures, deeds-in-lieu, and short sales, as well as delinquencies and/or indications of derogatory credit, including collections and judgments, may be eligible for an FHA-insured mortgage if the borrower
- can document that the delinquencies and/or indications of derogatory credit are the result of an Economic Event as defined in this ML,
- has completed satisfactory Housing Counseling, as described in this ML, and
- meets all other HUD requirements.
An Economic Event is any occurrence beyond the borrower’s control that results in Loss of Employment, Loss of Income, or a combination of both, which causes a reduction in the borrower’s Household Income of twenty (20) percent or more for a period of at least six (6) months.