Foreclosure Guides

A Quick Overview of FHA Financing After Foreclosure

A borrower is generally not eligible for a new FHA-insured mortgage when, during the previous three years his/her previous principal residence or other real property was foreclosed, or he/she has given a deed-in-lieu of foreclosure.

Exception: The lender may grant an exception to the three-year requirement if the foreclosure was 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. Divorce is not considered an extenuating circumstance. However, the situation in which a borrower whose loan was current at the time of a divorce in which the ex-spouse received the property and the loan was later foreclosed qualifies as an exception.

Note: The inability to sell the property due to a job transfer or relocation to another area does not qualify as an extenuating circumstance.

Want more information about foreclosures? Simply fill in the information below and we’ll promptly get back to you.