FHA Three Year Foreclosure Rule

[sittinpretty]

What is the name of your state (only U.S. law)? Michigan
Has anyone heard of, or known anyone that received an exception to the FHA foreclosure rule. The rule states that a previous foreclosure must be at least three years old. There are exceptions that can be considered such as the death of a wage earner or serious illness. Thanks.

 

[HUD-1]

If it was an FHA loan, most likely the three years will be the limit. Not many lenders use the exception language when there is a CAIVRS hit. If it was a conventional loan, your odds are better, but it is up to the individual underwriter. Some are more conservative than others. I would suspect the death of a wage earner, follwed by clean credit for 2 years is a good candiadate for an exception by an underwriter.