As we have been saying all along ... short sale and REO flipping are becoming more and more accepted by the government and major lending institutions. This is evidenced, among other things, by Freddie Mac's recent bulletins, updated credit policies by major lenders allowing for C buyer financing, and revised title bulletins stating that the C purchase price does not need to be revealed to the A lender as long as certain disclosures are made.
Last Friday the FHA has rescinded its 90 anti-flipping rule and will, for a period of 1 year, allow FHA buyers to obtain loans on properties that have been recently purchased by investors who intend to flip them for a profit
SO WHAT DOES THIS MEAN FOR YOU?????
In an effort to facilitate the sale of bank-owned properties, the Federal Housing Administration (FHA) has temporarily suspended its 90-day rule against flipping properties. Under the anti-flipping rule, the FHA will not insure a mortgage loan if the sales contract is executed within 90 days of the seller's acquisition of the property. Effective June 9, 2008, the anti-flipping rule has now been waived for one year for properties acquired by lenders, their subsidiaries, and their outside vendors.
The purpose of FHA's new policy is to facilitate the sale of bank-owned properties, given that foreclosed and abandoned homes harm neighborhoods and delay a community's recovery. However, FHA still requires homes to be "safe," "secure," and, "sound," which may not be the condition of certain foreclosed-upon properties.For information, go to http://www.fha.gov/. For general information about bank-owned property transactions.
The purpose of FHA's new policy is to facilitate the sale of bank-owned properties, given that foreclosed and abandoned homes harm neighborhoods and delay a community's recovery. However, FHA still requires homes to be "safe," "secure," and, "sound," which may not be the condition of certain foreclosed-upon properties.For information, go to http://www.fha.gov/. For general information about bank-owned property transactions.
This is information gathered and presented.
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