HUD Delays the Ban on Dual Agency for Short Sales on Properties with FHA Loan being sold short.Â The rule was to go into effect on October 1, 2013 as outlined in mortgagee letter 2013-23Â released in July 2013.Â The rule stated that brokers and their agents may only represent the buyer or the seller, but not both parties.Â This is commonly called dual agency so the rule thus makes it illegal for an agent that works for the brokerage of the listing agent to represent a buyer in the purchase of a short sale.
FHA Back to Work Program
Delaware FHA Loan Update Effect August 15, 2013
FHA Back to Work Loan Program – HUD released a new Mortgagee Letter 2013-26 and made it effective August 15, 2013 which was title FHA Back to Work – Extenuating Circumstances. The new guidelines allow borrowers who have experienced an Economic Event that resulted in a severe reduction in income that lead to a short sale, foreclosure, and/or bankruptcy to shorten the required wait time to a minimum of 12 months. The normal wait times are from 2 to 3 years from the derogatory event. If you would like to apply for the Back to Work Program you can call 302-703-0727 or apply online at Delaware FHA Mortgage Application
FHA Rescinds Select Credit Guides Effective June 15, 2012 with mortgage letter 2012-10
Mortgagee Letter 2012-10 rescinds guidelines regarding disputed accounts and collection accounts that were announced February 28, 2012 via Mortgagee Letter 2012-03.
Here are the 2 things YOU NEED TO KNOW about these changes:
1. Effective now, the FHA guides revert back to the previous guides regarding disputed accounts and collection accounts, meaning the DE underwriter has to make the decision whether disputed accounts and collection accounts must be paid as a condition of loan approval.