Just kidding

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Apparently using the “Charlie Brown” picture in a previous post was even more appropriate that I first thought. As you read last week, FHA had a new change coming that forced borrowers to pay off all debt out for collection if the total exceeded $1,000.

FHA has apparently changed their mind. Just as the 21st amendment repealed the 18th amendment (prohibition), FHA has repealed this coming change.

  •  As long as a borrower is able to receive an approval through automated underwriting, collection accounts are not taken into consideration so long as they do not impact the borrower’s ability to repay the new mortgage.
  • Court ordered judgements still must be paid off in full prior to closing.

In this analogy, Lucy will be playing the role of FHA.

Those two items were the guidelines prior to the announced change, and they will be the guidelines moving forward. Well, that is until FHA repeals the repealing letter?!? Who knows? Things change so much at times, that just might happen!

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