Back to work?

I am seeing some evidence of the new FHA “Back to work” program where borrowers can get an FHA mortgage even though they have had a foreclosure . . or have experienced financial difficulties due to extenuating circumstances.

working on LRT E. 4th street downtown St. Paul

Dubbed the “Back To Work – Extenuating Circumstances Program”, the FHA removed the familiar waiting periods that typically followed a derogatory credit event. Borrowers with a recent history of bankruptcy, foreclosure, judgment, short sale, loan modification or deed-in-lieu can apply  for an FHA-insured mortgage.

I kind of figured some folks would have to be forgiven for not being able to make mortgage payments during the great recession because if exceptions were not made to the rules that require years of work to become credit worthy again we would not have enough home buyers so that the housing market could recover.

It is wonderful that some folks can buy a home again yet at the same time I wonder if they would have been better off and maybe if we all would have been better off if the forgiveness had come before the foreclosure instead of after it.

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