Buy a home after a Foreclosure or Short Sale

ASSISTANT SECRETARY FOR HOUSING- FEDERAL HOUSING COMMISSIONER Mortgagee Letter 2013-26 August 15, 2013 All FHA-Approved Mortgagees Back to Work - Extenuating Circumstances The purpose of this Mortgagee Letter (ML) is to:  provide minimum underwriting standards and criteria for evaluating borrowers who have experienced an Economic Event, as defined in this ML, that resulted in a severe reduction in income due to a job loss or other circumstances resulting in reduced Household Income;  describe the use of housing counseling to qualify under the provisions of this ML;  amend HUD Handbook 4155.1, Chapter 4, Section C to add an Economic Event to the list of examples of extenuating circumstances and instruct lenders to use the guidance for Back to Work – Extenuating Circumstances established in this ML as Chapter 6 Section G, to underwrite an applicant with an Economic Event; and,  revise HUD Handbook 4155.1, 4.A.7.e, to clarify the process for requesting a review of information contained in CAIVRS for borrowers seeking an FHA-insured mortgage in accordance with the provisions of this ML. U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT WASHINGTON, DC 20410-8000 Julian Lopez Www.ShortSaleRealEstateExpert.com 909-996-4470