Category: Foreclousre Assistance

Foreclosure Guidelines for FHA Mortgage Loans in Kentucky FHA Loans in Kentucky with Foreclosure in the Past: 3 years from transfer date on Commissioner’s or Transfer deed must have elapsed prior to case number assignment date An exception to the 3 year requirement may be granted if the foreclosure was caused by extenuating circumstances beyond the borrower’s control such as a serious illness or death of a wage earner and the borrower has re-established good credit since the foreclosure. If the exception is granted, the loan must meet all manual underwriting guidelines. Divorce is not an extenuating circumstance however an exception may be granted if the mortgage was current at the time of the borrower’s divorce and the ex-spouse received the property and the mortgage was later foreclosed. Inability to sell the property due to job transfer or relocation is not considered an extenuating circumstance 3 years from transfer of title. Case number assignment cannot be ordered until the wait period has elapsed Same Extenuating Circumstance criteria as Foreclosures Pre-Foreclosure (Short Sale) exception for Borrower Current at the Time of Short Sale All mortgage payments on the prior mortgage were made within the month due for the 12 month period preceding the Short Sale;and All installment debt payments for the same time period were also made within the month due Exceptions to the 3 year wait time must follow manual guidelines