Well, I saw something from a lender a while back regarding stated income. As many of you may know, that may have been the single biggest factor in our home crisis a few years ago. It was only one time and I have not seen more since, so I assume they ran out of money quickly on that program.
Now, I got another email from a lender promising those who suffered a financial difficulty the chance to get a loan again. As with most things, if there is a void, someone will fill it. Well, here we are. Home values have crept up (ok, rocketed up) and lenders are feeling more comfortable expanding options to buyers.
In this case, the caveat is that the short sale, bankruptcy, foreclosure, whatever, needs to have been a result of “extenuating circumstances”. If they can demonstrate a legitimate reason for their applicable economic event, they can be considered for an FHA loan if they have one year of re-established credit.
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It is important to realize that those who simply stopped paying the mortgage will not qualify for programs like this. So, if you got sweet talked by a realtor into short selling your home because of nothing other than reduced value, you may pay the price. That is one reason I elected not to pursue distressed listings. I like the idea of helping people, not taking advantage of their difficulties. I realize there was a service to be provided but many simply took advantage of home owners in difficult situations. My blogs always suggested doing anything possible to hang onto your home, if you could. I know, not for everyone but it worked for me.
