The FHA has issued new rules allowing borrowers to qualify for a mortgage only one year after having had to file bankruptcy. This is just another example that the “stigma” surrounding that word: “bankruptcy” has disappeared.
In an open letter by the Commissioner of the FHA, Carol Galante states that this unusual period of time – this “recession-related period” has caused many bankruptcies. It is now called an “economic event,” which has a nicer tone to it. She further states that FHA recognizes the hardships faced by borrowers, and realizes that bankruptcy may not fully reflect the true ability to repay a mortgage.
Shortening the period to qualify for a mortgage to only 1 year is a major step, but it is also simply an indication of what has been happening over the last several years. Unexpected events, job losses, one time unplanned for expenses, health related problems, all lead to the need to adjust budgets through the bankruptcy laws, the legal, legitimate way to do it.
In this period of rising expenses, stagnating or reducing wages and retirement benefits, it has become impossible for many people to realize the “American Dream” and have the ability to move forward with their lives without some help.
If you find yourself in a position where the idea of using this law, authorized by the Constitution, and set out by Congress, please contact me to see if I can help in any way, even if it’s just to give advice.
Be sure to simply call me to set up your initial free consultation, whether in office or by phone conference. Also, please visit my website at www.peterblinn.com for more articles, information, and explanations of what Chapter 7 bankruptcy is all about.
For over 30 years, listening to clients and putting them at ease, while meeting their needs and helping achieve future goals, in Marion (Ocala, Belleview, Dunnellon…); Lake (Leesburg, Tavares, Mt. Dora, Lady Lake, Clermont, Fruitland Park…); Citrus (Crystal River, Inverness, Homosassa, Hernando…); Sumter( Bushnell, Wildwood, Webster, Lake Panasoffkee…; Orlando, and The Villages.