The Long and Short of Short Sales: Better Details Needed for FHA's Back to Work Program and Conventional "Extenuating Circumstances"

SOURCE: Mortgage News Feed

For past short sellers who have gone through the loss of a home and are eligible to return, criteria needed for a new mortgage is vague. The result is a partial story. Proving "extenuating circumstances" and confining the timeline for an economic event is a struggle for loan originators and underwriters trying to comply with vague criteria. Because of so many variables, lenders deny new loans for borrowers with a short sale or foreclosure in their past even when they may be eligible to repurchase again.

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http://nationalmortgageprofessional.com/news/54227/long-and-short-short-sales-better-details-needed-fhas-back-work-program-and-conventional


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