Good morning, this is great news!
Yesterday, HUD’s David H. Stevens issued a waiver of the 90 day flipping rule that has prevented private sellers (LLC’s, Trusts, etc) from taking offers from FHA borrowers in cases where they’ve been seasoned on title for less than 90 days. Hopefully this speeds up the absorption of the of distressed properties in our local market.
This waiver was issued for a period of 1 year, starting February 1, 2010. There are some conditions, such as the seller can’t be related to the buyer in any way (must be arms length transaction). Also, if the home’s new sales price is twenty percent greater than the current owner’s acquisition price, the lender must be able to justify the increased sales price. A solid appraisal with good recent comparables is a must, file should also include justification for increase in value via documented improvements to the property (receipts, cost breakdown, pictures, etc.)
For more information please go to the following URL’s:
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This is great news, when we saw this we got excited. This at least will open up a few opportunities for investors etc..Finally someone trying to do something to help the Real Estate market.. Thanks for keeping people informed..