HUD held an all-agency conference call in Tuesday, 8/27/2013 to clarify the counseling requirement for qualification under their new “Back to Work” program. The program is designed to allow people to obtain a mortgage after foreclosure sooner than the previous three year waiting period. The program is also available for those wishing to obtain a mortgage after short sale or deed in lieu of foreclosure.
The counseling necessary is standard pre-purchase counseling (but will be tailored to address the borrower’s “economic event”). A local agency is currently providing this type of counseling over the phone and is also in the process of setting up an online counseling system. There should be NO cost to receive this counseling because it is with a non-profit counseling agency. If you are told that there is a cost, let us know ASAP. The letter provided is valid for 6 months.
If potential homeowners do not complete their purchase within 6 months, the agency will reissue the letter required by HUD free of charge. Counseling sessions typically last 1-1.5 hours, but every case is different and more time may be allotted to cover all necessary topics. This particular agency is in San Diego County, but the letter provided will allow for nationwide purchases.
Need more information? Call us at 888-634-4260 for more information about how to qualify for a mortgage only ONE year after foreclosure!Tweet