Many think of bankruptcy as a sort of defeat, or as a last resort option. Yet more and more filers are realizing that there are many benefits to bankruptcy. You may be able to even get a break from the Federal Housing Administration after filing for bankruptcy if you can prove that your bankruptcy was caused by external economic factors. Many agencies understand that financial difficulties can happen, and they want to help, not hurt, victims of bankruptcy.

According to a recent article in The Los Angeles Times, the Federal Housing Administration is one of these organizations that want to make it easier for people who may have defaulted on their mortgage to get a new home loan with FHA backing. The applicants who want to try for a home loan under these circumstances only need to prove that an external economic situation caused them to fall behind on house payments and eventually allow for foreclosure or file for bankruptcy and liquidate the property.

Some acceptable external economic factors include a pay cut at work, job loss, or a decline in business income. If a person can prove that one of these circumstances facilitated a struggle with finances that resulted in bankruptcy, then the FHA will only require the applicant to spend one year making simple rent and credit card payments to prove financial stability and prudence.

If a person can maintain a clean record with his or her credit for one year, then the FDA will allow the individual to apply to buy a home with an FHA-insured loan. The must obtain housing counseling from an agency that is approved by the Department of Housing and Urban Development. This way, loan applicants will learn wise home purchasing and mortgage maintenance skills and learn how to save their money strategically to provide for times where they may have less money than is ideal.

The borrowers are not eligible for the new FHA loan unless they are three years out of a foreclosure or two years out of a bankruptcy. In addition to the job-related economic losses listed above, individuals have the right to cite a death in the family or a medical emergency as a reason for dwindling finances. These reasons were already honored by the FHA, but loss of income is a new addition to the list that will help many Americans to get back on the fast track to purchasing a home after bankruptcy.

The FHA Commissioner told The Los Angeles Times that the Federal administration simply wants to aid innocent families that were hit hard by the recent recession. They want to look at the financial crisis that hit America by evaluating how the recession affected individuals, and want to distinguish people hurt by circumstances beyond their control versus people what had trouble with their finances because of reckless spending.

If you are conservative with your money and believe that you might apply for one of these special loan offers by the FHA, you should contact your attorney and ask about whether or not this is a good choice for you. With the right lawyer there to help you, you may discover that you will be able to qualify for another loan sooner than you may have expected after bankruptcy.

There are strategic ways to best file for bankruptcy and go about the process, and with the right attorney on your side it may be easier for you to recover from filing. Learn more by contact a bankruptcy attorney near you today! You can use this directory to locate a reliable legal assistant in your area and getting started on your case!