Hi, there. This is Jonathan Ginsberg. I’d
like to tell you about an interesting development that I saw posted
on the Bankruptcy Law Network by one of the contributors, Chip Parker. I’m
actually one of the contributors as well. It’s a very good blog. There’s a
number of bankruptcy lawyers from all over the country who write about bankruptcy
matters and who are very involved in keeping up with the new law. I
certainly recommend this blog to you highly. But Chip has a recent post about a decision
by the FHA, the Federal Housing Administration, that changes the rules about
when you can qualify for an FHA guaranteed mortgage. I believe this was
just released in August. Basically, the rules now say that if you are
out of bankruptcy for a year, you can qualify for an FHA mortgage as long
as you can show some economic event led to your needing to file bankruptcy. That economic event could be a job loss or
some other economic trauma that forced you into bankruptcy. Again, I don’t
think it’s a very, very high standard. But the FHA, in its position paper
basically recognized that a lot of good, honest, hard-working people were
forced into bankruptcy because of economic events beyond their control.
If this happened to you, this basically means that you’re now eligible
for an FHA mortgage, which again, the underwriting standards are a little
bit easier, easier to qualify for a mortgage. You’ll be able to
qualify after a year coming out of bankruptcy. I think this is really reflective of what’s
going on out there in the housing market in general, and that is that
lenders recognize that many people have filed bankruptcy because of events
beyond their control. That even though underwriting standards are strict,
there’s starting to be a little bit of loosening so that people who
have come out of bankruptcy once again will qualify relatively easily for various
types of loans, be it their mortgage loans or car loans. So I want this to be some encouragement for
those of you who are thinking about filing bankruptcy, that recovering from
bankruptcy is certainly doable. It’s not as difficult as you might
think. Of course, when you’re out of bankruptcy you have no other debt.
You’ve cleared out your debt, in some ways you’re a much better credit risk. So I’m happy to chat with you about recovering
from bankruptcy. But I do want to pass along the good news that the
FHA, the government-guaranteed type of mortgage loan is now something that’s
available to people as little as a year out of bankruptcy. So, please let
me know if you have any questions. I hope this is helpful. Until next
time, I’ll talk to you soon.