March 6, 2012
In a recent blog post we reported the FHA’s announced changes to its rules concerning collections, court judgments, and payoffs of those actions.
FHA mortgagee letter 2012-3 published new instructions for FHA lenders added to HUD 4155.1 .4C.2.E. which now says, “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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