Solving the Knoxville Foreclosure Crisis
One Homeowner at a Time

Rick Smenner

RE/MAX Preferred Properties
[email protected]

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Knoxville Short Sales & Foreclosures: FHA Announces Back To Work Program

foreclosureFor Knoxville homeowners who have experienced foreclosure or a pre-foreclosure sale (i.e. deed-in-lieu or short sale), the FHA has recently announce their "Back To Work Program." Under this new program, the 3 year waiting period to buy a home no longer applies to homeowners that have experienced hardship. Read on below to find out more about this program. Under the "Back To Work Program," effective August 15th, 2013, Knoxville homeowners who have experienced hardship are now eligible to apply for an FHA loan. In the past, homeowners would be required to wait at least 3 years before buying a Knoxville home with an FHA loan. In order to qualify for this program, Knoxville homeowners must meet the following requirements: -First, you must have experienced an "economic event," which includes any of the following events: short sale, deed-in-lieu of foreclosure, foreclosure, Chapter 7 bankruptcy, Chapter 13 bankruptcy, loan modification, or forbearance agreement. -Next, you must be able to document you have fully recovered from the "economic event." Your lender will do this by looking at your credit history before the event, during the event, and the 12 months previous to the event. They will want to see that you had good credit prior to the event, and also that you've kept all account current since they event. -In addition, you must be able to show that you experienced lose of income by at least 20% during the "economic event," which made it difficult for you to continue making payments on your Knoxville home. This can be shown with tax returns, W-2s, pay stubs, unemployment income receipts, among other things. -Finally, prior to closing, you must complete the require housing counseling. If you've experienced a foreclosure or short sale on your Knoxville home, this is a great option to buy a home again. You can apply for the program through any FHA approved lender in Knoxville. You will be eligible to apply for the program 12 month after your "economic event." If you have questions about the program, be sure to check with a local FHA approved lender. If you're facing foreclosure, please let me know if there is anyway that my team and I can assist you. You can give us a call at 865-696-9002 or send an email to [email protected]. Also, be sure to check out our Knoxville Short Sale and Foreclosure Solutions Page.

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