DIVORCEES MAY BE GRANTED AN EXCEPTION IF EX DEFAULTS ON HOME LOAN

The information is located at 4155.1 4.C.2.f at http://www.hud.gov/offices/adm/hudclips/handbooks/hsgh/4155.1/41551HSGH.pdf on page 168

"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."

Did You Know You May be Able to Purchase Again in Just Two Years? So many loan and real estate professionals are misinformed about restoring their clients credit after a financial crisis. Most people in this situation think they have to live in "credit prison" for the next 7-10 years. This just isn't so.

If you have had extenuating circumstances surrounding their financial crisis, You may qualify for an underwriting exception. Why is that?...........well I think the government finally figured out that they were taking too many home buyers out of the market for circumstances they had no control over! And lets face it, you are probably going to recover in 2-3 years if you are financially responsible anyway.

I can be reached for comment at the number or email address below.

Patrick McCarthy
Northpointe Bank
866-901-3576
PatrickM@Northpointe.com