Colorado Springs Vintage Homes Blog
719.287.1049
Short Sale borrowers can buy again
New rules for FHA borrowers who previously had a short sale
Since Colorado Springs, like many places in the US have their share of homeowners who have done short sales, I was
really glad to see that HUD released some new guidelines about Short Sale Borrowers and information on when they may be eligible for a FHA loan. There are many reasons to do a short sale (12 Acceptable Reasons for a Short Sale) , and in my opinion, some are legitimate and some are not. These new rules give some clear guidelines.
Here’s a recap of document published on December 19, 2009:
Here is the actual language from the new FHA Guidelines:
FHA Guidance on Short Sales Borrowers are not eligible for a new FHA mortgage if they pursued a short sale agreement on his or her principal residence simply to take advantage of declining market conditions, and purchase, at a reduced price, a similar or superior property within a reasonable commuting distance.
