June 18, 2012
In March of 2012, we reported the FHA’s pending changes to the rules regarding collections and judgment actions–changes which have been cancelled, at least for now, by the FHA and HUD.
According to FHA Mortgagee Letter 12-03, there were important changes to the rules for borrowers with court judgments and/or collection actions on their record scheduled to take effect in July of 2012. Those changes included the following:
“If the total outstanding balance of all collection accounts is equal to or greater than $1,000 the borrower must resolve the accounts (e.g. entered into payment arrangements with minimum three months verified payments- paid as agreed) or paid in full at the time of, or prior to closing.
Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for www.valoans.com for (8) years and is currently the Associate Editor for FHANewsblog.com.
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