In my last post, I discussed how the new HUD guidelines released last week helped those who have had to file bankruptcy. Today, I would like to explain the benefits outlined for anyone who has been through a foreclosure in the last few years.

In the past, you were ineligible to purchase a new house for 3 years after foreclosing on a property. But now, you can purchase a new home as soon as 12 months after the foreclosure is finalized, assuming you meet a few criteria.

The first thing to consider is whether or not you had an “economic event” as defined by HUD. An economic event is any event out of your control which caused you to lose your job or have your household income reduced by at least 20%. If this event occurred, and lasted for a period of at least 6 months, then you have met the only criterion out of your control.

The next two requirements to qualify for a mortgage 12 months after you foreclosed on a home are things you can do on your own after the foreclosure. The first is to improve your credit to meet minimum lending guidelines, and the second is to attend housing counseling before applying. Once you have completed these steps, we can forgive the foreclosure and get you into a new home.

If you have any questions about eligibility or the specifics of the new policies, please contact me. And if there is anything you would like to add about the new policies, please leave a comment.