While I am not a major advocate of bankruptcy, there is
no
question that there are times when it is the best answer to an
individuals debt problem, enabling the debtor to make a fresh start.
I am primarily speaking here about a Chapter 7 Bankruptcy, not
Chapter 13, which can be a bit more complicated.
According to a recent article in Bankruptcy Law Network,
http://www.bankruptcylawnetwork.com/fha-mortgage-after-bankruptcy/?goback=.gde_3048567_member_270922365#!
The FHA in a major policy change has announced easier rules for
people looking to get a mortgage after bankruptcy. So, in the
interest of keeping our readers informed with the best and most
recent information in the world of debt relief, here goes.
The awesome news is that the FHA will allow a consumer to
qualify for a mortgage just one year after the filing of a bankruptcy
provided other minimum criteria are met. This also includes
short sales and foreclosures. The overall good news for consumers is that
not just regulators but entities from all financial areas are at least
realizing
that we are in fact in a new economy, and it is not about to go away.
The article speaks about people rebounding from the economic calamity
of the last 5 years, however I maintain that what they call digging out, should
more correctly be called adjusting to a new way of living.
Here are the new FHA Housing Rules:
The FHA will consider borrowers who
have received a bankruptcy discharge or short sale or foreclosure more that one
year prior if the borrower experienced an Economic Event and can
document the following:
- Prior to the economic event, the borrower had good credit and that certain credit impairments were the result of a Loss of Employment or a significant loss of Household Income beyond the borrower’s control;
- the borrower has demonstrated full recovery from the event; and
the borrower has
completed housing counseling.
It is interesting to note that they define an economic event as something which
caused a financial hardship for at least 6 months, such as a job loss, or
downgrade in income from a job. It is interesting to note that this is similsr
criteria for those entering a debt settlement program, however, the Gov’t
definition does not currently take into account a more expansive definition, of
having to care for a loved one,
or a sudden illness. Debt Settlement already does take these events into
account.
I suspect that these guidelines will be expanded to take this into account.
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The ADE Debt Relief Phone Numbers
Free Credit Counseling--- 877-766-2465
Student Loan Consolidation---877-766-2465
Free Bankruptcy Counseling-- 516-204-4640 (National Number)
Credit Restoration Counseling-888-586-2661 Inc. Credit Report Review
Each of these numbers provides Free
Counseling.
Yours Truly
Steven Ciantro
Consumer Advocate
American Debt Enders
Rated 3rd Nationally
Certified Credit Counselor
TalkShoe Radio Host
Member National Association of Certified Credit Counselors
Debt Expert for Gail Kasper's Top 1% Club
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