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special circumstances. Also found in: Wikipedia. special circumstances. n. in criminal cases, particularly homicides, actions of the accused or the situation under which the crime was committed for which state statutes allow or require imposition of a more severe punishment.
FHA describes extenuating circumstances as circumstances that were beyond the control of the borrower, such as a serious illness or death of a wage earner, and the borrower has re-established good credit since the major credit event. For FHA, Divorce is not considered an extenuating circumstance.