Sec. 261. 7-year borrower suspension for foreclosure
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Except as provided in paragraph (2), with respect to any mortgage on a 1- to 4-family residential property that is foreclosed upon, during the 7-year period beginning upon the date of such foreclosure, the FHA may not newly insure, under any provision of this title, the National Housing Act, or any FHA program, any other mortgage under which the mortgagor is the individual who was the mortgagor under the mortgage that was foreclosed upon. The FHA shall provide, by regulation, for the FHA to waive the applicability of paragraph
(1)with respect to a mortgagor in cases in which hardship circumstances materially contributed to the default and foreclosure of the mortgage. For purposes of this subsection, such hardship circumstances may include divorce, job or other income loss, health problems, death in the family, and such other situations as the FHA may prescribe. Section 505 of the Housing Act of 1949 ( 42 U.S.C. 1475 ) is amended by adding at the end the following new subsection: Except as provided in paragraph (2), with respect to any mortgage on a 1- to 4-family residential property that is foreclosed upon, during the 7-year period beginning upon the date of such foreclosure, the Secretary may not newly make, insure, or guarantee, under any provision of this title, any other loan under which the borrower is individual who was the mortgagor under the mortgage that was foreclosed upon. The Secretary shall provide, by regulation, for waiver of the applicability of paragraph
(1)with respect to a borrower in cases in which hardship circumstances materially contributed to the default and foreclosure of the mortgage. For purposes of this subsection, such hardship circumstances may include divorce, job or other income loss, health problems, death in the family, and such other situations as the Secretary may prescribe. . The FHA and the Secretary of Agriculture shall jointly issue regulations required under subsection
(a)of this section and section 505(c) of the Housing Act of 1949, as added by subsection
(b)of this section.
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Sec. 261
7-year borrower suspension for foreclosure
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