Summary
A 34-year-old applicant with a bachelor's degree was granted a security clearance despite concerns under Guideline F (Financial Considerations). The issues stemmed from financial difficulties primarily caused by unemployment and a failed mortgage.
Specifically, the applicant's mortgage became delinquent in 2010 after he lost his job. Despite attempts to modify the loan and make partial payments, he was unable to sustain the mortgage due to intermittent employment and his then-wife's unemployment. He vacated the property in May 2014, and after an unsuccessful short sale, a deed-in-lieu of foreclosure was proposed. Foreclosure proceedings began in October 2014 and concluded in March 2016, with the unpaid principal balance reduced to $0 by June 2016. Additionally, a charged-off debt of approximately $9,234 from December 2012 was reduced to $7,134 by March 2017 through regular payments. Another debt, placed for collection in July 2014 for approximately $3,117, was reduced to $1,117 by March 2017 through consistent payments.
The clearance was granted because the applicant demonstrated a strong commitment to resolving his debts, with a track record of repayments. His financial difficulties were largely attributed to circumstances beyond his control, such as unemployment. Furthermore, he is currently meeting all monthly financial obligations and maintains a positive net monthly remainder.
Why the Applicant Prevailed
- The applicant established a track record of debt-resolution efforts and repayments.
- He demonstrated that his financial difficulties were largely due to circumstances beyond his control, such as unemployment.
- The applicant is current on his monthly financial obligations and has a positive net monthly remainder.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)appliedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
- AG ¶ 20(b)appliedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
- AG ¶ 20(c)appliedThe Person Has Received or Is Receiving Counseling for the Problem And/or There Are Clear Indications That the Problem Is Being Resolved or Is Under Control
- AG ¶ 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedOct 10, 2015
- Answer filedJan 19, 2016Applicant elected to have the case decided on the written record.
- Hearing held—No hearing; case decided on written record.
- Decision dateMar 24, 2017
Cite For
- Mitigation of Financial Concerns Under Guideline F
- Consideration of Circumstances Beyond Control in Financial Issues
- Good-faith Efforts to Resolve Debts as a Mitigating Factor