As reported by BAH.. www.protectyourfuture.com
"The Federal Housing Administration’s (FHA) Back-to-Work-Extenuating-Circumstances Program offers a second chance on home ownership to those who have filed bankruptcy or lost a home through short sale or foreclosure by reducing the time restrictions to qualify for a new mortgage.
FHA Mortgage Guidelines originally demanded those befallen to bankruptcy, foreclosure, or short sale to wait 2-3 years before being eligible to apply for a FHA-backed mortgage. Effective for FHA cases filed on, or after, August 15, 2013, the new Back-to-Work Guidelines only require a 1-year waiting period and also extends the Guidelines to deed-in-lieu’s, forbearance agreements, loan modifications, and pre-foreclosure sales.
“FHA recognizes the hardships faced by these borrowers, and realizes that their credit histories may not fully reflect their true ability or propensity to repay a mortgage,” FHA Commissioner Carol Galante stated in a letter announcing the program.
Back-to-Work applicants must meet several requirements before participating in the program. At a minimum, borrowers must experience an “economic event” such as a short sale or foreclosure. Other accepted economic events are loss of employment, loss of income or a combination of both. A valid economic event must produce a 20 percent reduction in household income. W2s, federal tax returns and written Verification of Employment can be used to show a 20 percent loss in household income.
Next, the borrower must demonstrate a recovery from the economic event and agree to complete a one-hour counseling session with a HUD-approved agency.
FHA’s Back-to-Work-Extenuating-Circumstances Program is set to expire on September 30, 2016; three years after the Mortgage Debt Relief Act’s (MDRA) imminent expiration. Distressed homeowners must mind MDRA’s December 31, 2013 expiration. Homeowners who do not take advantage of the MDRA may be taxed on cancelled debt. Meaning the IRS will consider debt cancelled from a foreclosure, deed-in-lieu, or a short sale as taxable income. With barely 4 months until the MDRA’s expiration, interested participants must act quickly as short sales or deed-in-lieu may take 3-to-6 months to complete. By bundling MDRA tax relief benefits with the advantages of FHA-loan reduced waiting periods, distressed homeowners can quickly find renewed hope."- http://protectyourfuture.com/new-fha-program/
Josh Parker is the Team Leader of ProFusion Property Group at Keller Williams Realty, Inc., located in Trinity, FL, and an active Tampa YPN Committee Member. ProFusion Property Group specializes in the listing & sale of residential real estate all over Pinellas, Pasco & Hillsborough County. His team has successfully sold over 175 units for their clients in 2012, while maintaining an exceptional “sold price to list price” statistic of 99.08%. For more information, free tips, and free home searches, please visit Josh & the ProFusion Team at www.profusionpg.com!