12-03-2022  2:31 pm   •   PDX and SEA Weather
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NORTHWEST NEWS

Tough Oregon Gun Law Faces Legal Challenge, Could Be Delayed

Midterm voters narrowly passed one of the toughest gun control laws in the nation, but the new permit-to-purchase mandate and ban on high-capacity magazines faces a lawsuit that could put it on ice just days before it's set to take effect.

Portland Approves $27M for New Homeless Camps

Public opposition to the measure and the money that will fund it has been heated, with critics saying it will criminalize homelessness and fail to address its root causes.

Portland Settles Lawsuit Over Police Use of Tear Gas

The lawsuit was originally filed by Don't Shoot Portland in June 2020. “Our freedom of expression is the foundation of how we make social change possible,” Teressa Raiford said in a news release. “Black Lives Still Matter.”

Oregon Lawmakers Lift Security Measure Imposed on Senator

Since July 2019, Sen. Brian Boquist had been required to give 12 hours notice before coming to the Oregon State Capitol, to give the state police time to bolster their security and to ensure the safety of people in the Capitol.

NEWS BRIEFS

PBS Genealogy Show Seeks Viewers’ Brick Walls

The popular PBS show “Finding Your Roots” is putting out a nationwide casting call for a non-celebrity to be featured on season...

The James Museum Opens Black Pioneers: Legacy In The American West

This first-of-its-kind-exhibition explores Black history in the West with a timeline of pictorial quilts. ...

Use of Deadly Force Investigation Involving Clackamas County Sheriff and Oregon State Police Concludes

The grand jury’s role was solely to determine whether the involved officers’ conduct warranted criminal charges; questions...

Scientists call for action to help sunflower sea stars

ASTORIA, Ore. (AP) — Scientists along the West Coast are calling for action to help sunflower sea stars, among the largest sea stars in the world, recover from catastrophic population declines. Experts say a sea star wasting disease epidemic that began in 2013 has decimated about...

To address wealth gap, Wash. to consider K ‘baby bonds’

SEATTLE (AP) — Jennifer Bereskin dropped out of high school when she was 17. Her family was homeless, and she needed to get a job to buy food and afford bus fare. Couch surfing with friends in Everett, Lynnwood and Seattle, her dreams of college were put aside. “I was merely...

Missouri holds off Arkansas 29-27 to reach bowl eligibility

COLUMBIA, Mo. (AP) — Missouri and Arkansas will be headed to similar bowl games after the Tigers held off the Razorbacks 29-27 on Saturday night, leaving each of the bitter border rivals 6-6 on the season. Only one walked out of Faurot Field with victory cigars. Brady...

Rivalry week should bring SEC bowl forecast into clear focus

GAINESVILLE, Fla. (AP) — It’s rivalry week for most of the Southeastern Conference. The Egg Bowl. The Iron Bowl. The Palmetto Bowl. The Sunshine Showdown. Clean, Old-Fashioned Hate. The Battle Line Rivalry. It’s a chance for everyone to either avoid or add to the powerhouse...

OPINION

‘I Unreservedly Apologize’

The Oregonian commissioned a study of its history of racism, and published the report on Oct. 24, 2022. The Skanner is pleased to republish the apology written by the editor, Therese Bottomly. We hope other institutions will follow this example of looking...

City Officials Should Take Listening Lessons

Sisters of the Road share personal reflections of their staff after a town hall meeting at which people with lived experience of homelessness spoke ...

When Student Loan Repayments Resume, Will Problems Return Too?

HBCU borrowers question little loan forgiveness, delays to financial security ...

Tell the Supreme Court: We Still Need Affirmative Action

Opponents of affirmative action have been trying to destroy it for years. And now it looks like they just might get their chance. ...

AFRICAN AMERICANS IN THE NEWS

Antisemitic celebrities stoke fears of normalizing hate

A surge of anti-Jewish vitriol, spread by a world-famous rapper, an NBA star and other prominent people, is stoking fears that public figures are normalizing hate and ramping up the risk of violence in a country already experiencing a sharp increase in antisemitism. Leaders of the...

Both sides see high stakes in gay rights Supreme Court case

WASHINGTON (AP) — The Supreme Court is being warned about the potentially dire consequences of a case next week involving a Christian graphic artist who objects to designing wedding websites for same-sex couples. Rule for the designer and the justices will expose not only same-sex...

GOP's Duarte takes California Central Valley US House seat

LOS ANGELES (AP) — Republican John Duarte defeated Democrat Adam Gray on Friday in a new California U.S. House district in the Central Valley farm belt that produced the closest congressional contest in the state this year. With virtually all of the ballots counted, Duarte has just...

ENTERTAINMENT

Prince William, like his father, prioritizes the environment

BOSTON (AP) — Prince William capped a three-day visit to Boston by meeting with President Joe Biden to share his vision for safeguarding the environment before attending a gala event Friday evening where he sounded an optimistic tone about solving the world’s environmental problems through...

LGBTQ chorus in Colorado Springs unifies community with song

COLORADO SPRINGS, Colo. (AP) — Below the vaulted dome and dark wood beams of a church in Colorado Springs, a gay men's choir rehearsed for a concert that's taken on new meaning after an LGBTQ night club became the site of a shooting that killed five and wounded 17. “There is no...

Britney Spears' massive pop songs to land on Broadway, again

NEW YORK (AP) — A stage musical about woke princesses that uses hit songs by Britney Spears will land on Broadway this summer. "Once Upon a One More Time," featuring Spears' tunes, including “Oops!… I Did It Again,” “Lucky,” “Stronger” and “Toxic,” will start...

U.S. & WORLD NEWS

Polynesian pride: Three-day canoe voyage in mid-Pacific

RAPA NUI, Chile (AP) — The causes are worthy, the course is daunting – almost 500 kilometers (about 300 miles)...

Defeated election conspiracists seek to lead Michigan GOP

LANSING, Mich. (AP) — The Republicans who lost their races for Michigan's top three statewide offices after...

Messi scores, Argentina beats Australia 2-1 at World Cup

AL RAYYAN, Qatar (AP) — Lionel Messi marked his 1,000th professional game with his first goal in the knockout...

AP PHOTOS: Residents face new reality in retaken Kherson

KHERSON, Ukraine (AP) — When Ukraine wrested back Kherson from Russian occupiers nearly a month ago, it was a...

Russia rejects -a-barrel cap on its oil, warns of cutoffs

KYIV, Ukraine (AP) — Russian authorities rejected a price cap on the country's oil set by Ukraine’s Western...

Thousands protest in South Korea in support of truckers

SEOUL, South Korea (AP) — Thousands of demonstrators representing organized labor marched in South Korea’s...

Alex Veiga AP Real Estate Writer

LOS ANGELES (AP) -- Next to filing for bankruptcy protection, nothing wrecks your chances of qualifying for a home loan like a foreclosure.

And if you got out from under an oppressive mortgage through a short sale - when the bank agrees to accept less than what the homeowner owes - lenders can look upon you just as unfavorably.

It's a reality that the former owners of the more than 4 million homes lost to foreclosure in the six years since the housing bubble burst will have to confront if they want to own again. But the passage of time makes all the difference.

That's because mortgage-lending guidelines that most banks follow prohibit them from making loans to people with foreclosure or a short sale in their credit history, often for years. Never mind the hit that one's credit score takes.

Still, some of the homeowners who were foreclosed upon when the market first started to skid are now looking to buy and getting loans.

"They're probably going to pay a little higher interest rate, but with rates so low, a higher interest rate of 4 percent is not a big deal," said Rosa Herwick, a broker and owner of Century 21 JR Realty in Henderson, Nev.

So how likely are banks to approve your mortgage application if you have a real estate-related blemish on your record? And can you do anything to spring yourself from the mortgage penalty box?

It depends on several factors, but largely on whether you had a foreclosure or a short sale.

FORECLOSURE

Generally, borrowers who have a foreclosure in their credit history can expect to wait between two to seven years before a lender will even accept their loan application.

The waiting periods stem from guidelines most banks must follow in order to be able to sell their home loans. That's because potential purchasers, such as Fannie Mae and Freddie Mac, each have a different set of guidelines for the loans they will buy and criteria for whom they deem a qualified borrower.

The fact is, a person's credit score, employment history and other factors that make up one's creditworthiness will take a back seat to these resale guidelines.

If a buyer with a past foreclosure is seeking a government-backed mortgage, the waiting period can vary before they can qualify.

Take the Federal Housing Administration, which insures roughly 30 percent of new loans. Under its guidelines, former homeowners must wait three years from the date of their foreclosure before they can qualify for backing by the agency.

Compare the U.S. Department of Agriculture's housing program which requires three years, while the time penalty for a VA loan is two years. Fannie Mae and Freddie Mac, which own or guarantee about half of all mortgages, require the longest stretch: seven years after a foreclosure.

In some cases, the waiting periods for a foreclosure can be reduced.

Fannie Mae, for example, allows a three-year waiting period in the event the foreclosure was due to an extenuating circumstance. The company defines this as an event that was beyond the homeowners' control and resulted in a sudden reduction in income or catastrophic increase in financial obligations. Think job layoff, medical bills or divorce.

FHA may grant an exception to its waiting period in the event a wage-earner becomes seriously ill or dies. A divorce may qualify for an exception, but only in certain cases.

SHORT SALES

The roadblocks for having a short sale in your credit history can be less severe, and in some cases, waived altogether.

FHA requires borrowers who weren't paying their mortgage when they sold their house to wait three years before they can qualify for a home loan. That time penalty may be waived in certain cases, including long-term job loss.

There is no FHA time penalty for homeowners who made their house payments in the 12 months before their short sale.

The size of a down payment can also shorten the waiting period.

A down payment of 20 percent or more will cut Fannie Mae's time penalty on a borrower with a short sale down to two years from seven. Buyers who put down 10 percent can qualify after four years.

CREDIT SCORE

It's no longer just a waiting game for homeowners caught up in the earliest stages of the foreclosure crisis in 2007 and 2008.

There's still the impact a foreclosure or short sale has on one's credit score - still very much a factor in qualifying for a loan.

Like most credit blemishes, foreclosures and short sales will remain in your credit history for seven years.

As a general rule, the higher your FICO score, the more it will drop as a result of a bad debt, said Barry Paperno, consumer affairs manager for MyFICO.com, the consumer website for FICO.

FICO credit scores range from 300 to 850. In simulations, a foreclosure sent a FICO score of about 720 down to as low as 570 and took about seven years to recover fully, assuming everything else being equal.

Still, there are steps one can take to burnish one's tarnished credit rating.

- While in the foreclosure penalty box, make sure to pay all your bills on time.

- Get more credit. This may sound counterintuitive after a foreclosure, but beefing up your track record of good credit accounts can help boost one's credit score. A car loan or a credit card will do. But if you get a credit card, pay it off every month.

- Be patient. A foreclosure's drag on your credit score will decline over time.

- Dispute any mistakes on your credit report, which can lower your score.

- Don't close your oldest credit accounts. Your score gets a boost from older credit lines.

- Scale back your lifestyle and pocket the savings toward a future down payment.

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