Thousands who have faced foreclosure in the past wonder “how long do I have to wait before I can buy a new home”?

Unfortunately the answer is not simple and changes regularly.

Bully tactics used to scare or coerce buyers.

For several years I have been explaining that no one can predict the length of time that FHA, Fannie Mae or HUD, or a specific lender will require a homeowner to wait to qualify for a new home loan after a prior foreclosure, short sale or bankruptcy.  Realtors try to scare people into thinking that these periods are set in stone.  This is simply not true.

Realtors, brokers and lenders make a commission when you finance a new home. They have no incentive to make sure you can actually afford the loan.

Think about the information you are giving this stranger: all your financial information, your children’s names, bank accounts and your social security number. You do this without the slightest guarantee that the information will be kept safe.

Usually about every two to three years one or all of these agencies change their policies.   To support my statement in August of 2013, the Federal Housing Administration (FHA) announced its Back to Work Program.  This program looks at the extenuating circumstances that a homeowner faced prior to a foreclosure, short sale or bankruptcy.  In some very limited cases this program will shorten the waiting period for home buyers to one year from two to seven years.

To qualify for the program, home buyers need to show proof that that they suffered an economic event that resulted in a loss of 20% or more of their income for a period of six months or more, and that they have fully recovered financially from this event. In addition, participants must have received counseling from a U.S. Department of Housing and Urban Development (HUD)-approved agency.

CLICK TO OUR WEBSITE

This is just one of many programs that exist, or will exist over the next several years.  Don’t let anyone tell you that administrative procedures or law never change.

bankruptcy

375 words|1.9 min read|Categories: Consumer Issues, Loan Modification, Real Estate, Trustee Sales|By |Published On: December 27th, 2013|Last Updated: June 19th, 2022|

Share this article

Diane is a well respected Arizona bankruptcy and foreclosure attorney. As a retired law professor, she believes in offering everyone, not just her clients, advice about bankruptcy and Arizona foreclosure laws. Diane is also a mentor to hundreds of Arizona attorneys.

*Important Note from Diane: Everything on this web site is offered for educational purposes only and not intended to provide legal advice, nor create an attorney client relationship between you, me, or the author of any article. Information in this web site should not be used as a substitute for competent legal advice from an attorney familiar with your personal circumstances and licensed to practice law in your state. Make sure to check out their reviews.*

Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Google Reviews
Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Yelp Reviews
Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Avvo Reviews
Avvo - Rate your Lawyer. Get Free Legal Advice.
Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Alignable Reviews
Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Better Business Bureau
Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Google Reviews
Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Yelp Reviews
Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Avvo Reviews
Avvo - Rate your Lawyer. Get Free Legal Advice.
Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Alignable Reviews
Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Better Business Bureau

In Case You Missed It

  • All Attorneys Must Return Client Calls, Even Flat-Fee Attorneys In a recent bankruptcy case, In re: Dennis Molnar, 19-bk-09525, 2024 WL 190919 (Jan. 17, 2024 N.D, Ill.), a court highlighted a [...]

  • Published On: January 3, 2024

    Understanding Why Some Bankruptcy Cases Get Dismissed or Discharge Revoked for Bad Faith Bankruptcy is meant to offer individuals and businesses a chance at a fresh start by alleviating financial burdens. However, [...]

  • If Keeping Your Home is Important, Know Rules of Bankruptcy  Experiencing bankruptcy brings both challenges and uncertainties Facing bankruptcy can be a challenging and uncertain time. One of the most [...]

  • The article titled "Dangers of Using Public Wi-Fi Networks" posted on Galloptech Group's blog offers a comprehensive and insightful exploration of the risks associated with using public Wi-Fi networks. Here's an outline of what makes [...]