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Can anybody remember when the times were not hard, and money not scarce?  - Ralph Waldo Emerson

I am nowhere near old enough to have lived through the Great Depression. In fact, even the gas lines of the late ‘70’s are a foggy memory from my childhood. I did just turn 40, however, and I did stay at a Holiday Inn Express once.

So with all that experience, I can state that I have never seen a time when so many good, conscientious and hard working people have struggled so much financially. A lot of people around metro Atlanta are losing their homes, and a lot more are declaring bankruptcy. I know, it is all over the news and it’s all over the country. But I mean a lot of people that I know and meet and have lunch with and our kids play together right in Alpharetta and around Atlanta. That makes it real.

And when tough times strike, the moment can seem hopeless.

It’s not. And FHA financing is one of those vehicles to get back on your feet quickly and gracefully.

Bankruptcy

The mere thought of a bankruptcy causes people to hide in shame and fear of their neighbors, and – God forbid – their families, finding out. Yet, bankruptcies are up 33% in October, compared with October, 2007.

And while I would not wish that on anyone, thankfully the laws in this great country allow us to seek that fresh start when times are dire and there is no other way out. And FHA is there for you.

• Chapter 13 bankruptcy: FHA allows for a borrower to take out a new loan just one year into the Ch. 13 bankruptcy, so long as all the obligations are being paid on time and the court gives it’s permission.

• Chapter 7 bankruptcy: FHA allows for the borrower to obtain a new FHA insured mortgage just 2 years after the discharge date, so long as the credit history since the bankruptcy is clean. And, if there were extenuating circumstances that caused the bankruptcy, such as an extended illness, then the borrower can obtain new financing after just 1 year from discharge.

  And in the case of a foreclosure, many people think that they have to wait practically forever, or that they simply cannot buy another home – ever. Well, that is also not true. Under normal circumstances, a borrower can take out an FHA mortgage three years after the foreclosure date, assuming good payment histories since then; and two years after if there were extenuating circumstances. And divorce, by the way, is not considered extenuating circumstances by HUD for obtaining FHA financing. That is fodder for another post.