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Wednesday, December 4, 2013

Foreclosed owners get second chance sooner

 Those who lost their home due to financial hardships may get another shot at being homeowners again soon. The Federal Housing Administration (FHA) recently announced that it would shorten the waiting period for qualified borrowers who’ve had a bankruptcy, foreclosure, deed in lieu of foreclosure or short sale if they wish to buy a home again.

Under FHA’s Back-to-Work program, homeowners must show that they have their finances in order, and they must receive counseling from a HUD-approved agency.

Those who meet the requirements can apply to buy a property in as little as a year.

“The Back to Work program is a great opportunity for us to help those impacted by the recent housing crisis,” Heather Shanahan, a representative with a HUD-approved housing counseling agency called Springboard, told HousingWire. “Our goal in our counseling sessions is to enable the borrower to better understand their loan options and the obligations.”

Counselors provide borrowers with a customized action plan that reflects household budgets and shows borrowers how they can meet their financial obligations to prevent default again in the future.

Source: “Springboard helps formerly distressed borrowers get back on track,” HousingWire (Nov. 19, 2013)

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