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Articles Tagged With: Foreclosure

June 3, 2014

FHA Loans and Minimum Waiting Periods After Foreclosure: A Reader Question

By Joe Wallace

A reader asks, “After a foreclosure how many years you must wait for a new application?” FHA loan rules governing this question can be found in HUD 4155.1, Chapter Four, Section C. That section states in part: “A borrower is generally not eligible for a new FHA-insured mortgage if, during the previous three years • his/her previous principal residence or other real property was foreclosed, or • he/she gave a deed-in-lieu of foreclosure.” FHA loan rules permit an exception to this waiting period,  IF the foreclosure can be documented as being, “…the result of documented extenuating circumstances that were beyond the control of the borrower, such as a serious illness or death of a wage earner, and the borrower has re-established good credit since the foreclosure.” A common question about these | more...

 

August 20, 2012

FHA Announces Disaster Relief for Montana, Maryland, Wisconsin

By Joe Wallace

The FHA and HUD have issued press releases announcing disaster relief for victims of fires and storms across three states. FHA relief programs are now available for residents of federal disaster areas in Montana affected by wildfires there, plus storm victims in Maryland and Wisconsin. FHA relief is available to homeowners in federally declared disaster areas once such declarations are officially made. U.S. Housing and Urban Development Secretary Shaun Donovan said in recent press releases, “Families who may have been forced from their homes need to know that help is available to begin the rebuilding process,” said Donovan. “Whether it’s foreclosure relief for FHA-insured families or helping these counties to recover, HUD stands ready to help in any way we can.” FHA help for those in the affected areas includes | more...

 

May 4, 2012

FHA Loan Forbearance For Unemployed Home Owners

By Joe Wallace

At the FHA official site, there is a page titled Avoiding Foreclosure. This page has a list of special programs and information on helping FHA borrowers avoid loan default and foreclosure. One such program is aimed at homeowners with qualifying FHA guaranteed mortgages who have lost their jobs. The program known as the FHA Special Forbearance Program was announced in July, 2011 and requires lenders to “extend the forbearance period for unemployed homeowners to 12 months. The changes to FHA

 

April 20, 2012

FHA/HUD Assistance For Hawaii Storm Victims

By Joe Wallace

The FHA and HUD have announced disaster assistance for victims of recent storms in Hawaii. According to a press release issued by the Department of Housing and Urban Development, the department will “speed federal disaster assistance to the State of Hawaii and provide support to homeowners and low-income renters forced from their homes following severe storms, flooding and landslides” during the month of March. The announcement comes after a presidential disaster declaration for Hawaii’s Kauai County. According to the press release, “The President

 

February 16, 2012

Historic Settlement Between Federal Government and Five Major Banks

By Joe Wallace

The Department of Housing and Urban Development recently announced a $25 billion settlement between the government and the five largest banks in the U.S. United States Attorney General Eric Holder, Department of Housing and Urban Development (HUD) Secretary Shaun Donovan, Iowa Attorney General Tom Miller and Colorado Attorney General John W. Suthers announced the “landmark $25 billion agreement with the nation’s five largest mortgage servicers to address mortgage loan servicing and foreclosure abuses.” According to the press release, this is the largest federal-state civil settlement ever obtained and is the result of “extensive investigations by federal agencies, including the Department of Justice, HUD and the HUD Office of the Inspector General (HUD-OIG), and state attorneys general and state banking regulators across the country.” The settlement includes Bank of America Corporation, | more...

 

January 12, 2012

FHA Refinance of Borrowers in Negative Equity Positions Program

By Joe Wallace

The continued housing market slump has many borrowers struggling with mortgage payments and facing what is technically called a “negative equity position”, which means the borrower owes more on the property than the home is worth on the market. This is also known as being “upside down” on a mortgage. FHA borrowers who find themselves owing more than they could reasonably sell the home for are in a tough position when it comes time to decide whether to keep the home or try to ride out difficult financial circumstances, but for some borrowers there’s an option available in the form of a recent FHA loan refinancing program. The FHA

 

December 29, 2011

FHA Extends Anti-Flipping Waiver into 2012

By Joe Wallace

The FHA has extended a waiver to its anti-flipping rules into 2012. Under normal circumstances FHA rules forbid taking out an FHA mortgage for the purpose of “flipping”,which is the practice of buying a home, renovating it, and returning it to the market as soon as possible. A press release from the Department of Housing and Urban Development, HUDNo 11-292, states the waiver will be extended through 2o12 as part of an effort to stabilize home values and improve the housing market. Acting Federal Housing Administration Commissioner Carol J. Galante was quoted in the release, saying

 

September 6, 2011

How To Buy a HUD Home Part Two

By Joe Wallace

In our last blog post we discussed HUD homes and who can buy them. A HUD home is a one-to-four unit residential property which was originally purchased with an FHA mortgage. The loan went into default and foreclosure, and became the property of the Department of Housing and Urban Development. To cut its’ losses, HUD offers these homes for sale at a discount. According to the FHA official site, “HUD Homes are sold ‘as-is,’ without warranty. That means that HUD will not pay to correct any problems. But even if a HUD Home needs fixing up – and not all of them do – it can be a real bargain…” FHA adds, “HUD’s asking price on the home will reflect the fact that the buyer will have to invest money | more...

 

September 5, 2011

HUD Announces $10 Million Dollar Initiative To Fight Mortgage Scams

By Joe Wallace

In recent months there have been many headlines about con artists targeting FHA and conventional borrowers in trouble on their home loans. A recent press release from the Department of Housing and Urban Development announced a new program to fight scammers. HUD has pledged more than $10 million in housing counseling grants for HUD-approved agencies. “The funding announced today is specifically earmarked to provide counseling assistance relating to mortgage modification, avoiding potential mortgage scams, and assisting victims of scams,” according to Department of Housing and Urban Development Secretary Shaun Donovan. “It is crucial that we support these agencies in helping struggling families do whatever is possible to avoid foreclosure without being victimized by so called mortgage ‘rescue’ companies.” The grand money will be awarded to 139 local housing counseling agencies | more...