Foreclosures and Short Sales
A monograph on “Debt and Home Foreclosures: Their Effect on National Security Clearances” by Sheldon I. Cohen, a prominent Washington D.C. area attorney specializing in national security clearance, was recently posted at his website. Cohen reviewed 62 case decisions by Defense Office of Hearings and Appeals (DOHA) Administrative Judges between 2006 and 2010 involving foreclosures and short sales. He also reviewed 71 DOHA Appeal Board cases involving Guideline F: Financial Considerations. Regarding 22 case decisions that resulted in the granting of security clearances, Cohen stated:
“The common thread in all of these cases is that: (1) applicants were victims of circumstances not of their own doing; (2) they had not been speculators in the housing market who were caught when the bubble burst; (3) they had not succumbed to fraudulent schemes “too good to be true” as a result of their own greed; and (4) they had made good faith efforts to meet their other debts after the loss of their homes by foreclosure or short sale.”
This monograph is probably the only document on the internet that analyzes written case decisions on this subject. A further analysis of the cases reviewed by Cohen might produce some distinctions between outcomes of cases involving foreclosures versus short sales.