Big News

HUD has just extended the waiver of the 90 day seasoning for REOs being sold to FHA customers. They have extened it to May 10th 2010. That means you can sell an REO to an FHA borrower immediately. No waiting the 90 days.. sounds like a challenge. This includes the 203b and 203k.

Property Flipping has been frowned on and considered illegal by HUD for quite a while. I remember having them in my office once years ago telling me just that. I had purchased a property at a wholesale price, and sold it a few days later for a nice profit... they lectured me on how that was illegal. I then suggested that I had a grocery store and purchased bread at a wholesale price, put a markup on that bread and resold it later that same day to achieve my profit. The fact was that the property I sold, without doing anything to it, was sold under market by me as well. I finally was able to convence them what I had done was normal in the course of real estate business. I never heard from them again so I guess they agreed.

Mike Young, 203k Team Leader    Mike ready for your 203k order

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5 Comments on Property Flipping

MAY
19
2009
1,307,623 Points 96 Featured Posts Outside Blog Hit Router Attended Rain Camp Called Shot Master

I got the same notice this morning.  It needs to have a permanent extension.  If it's a bank trying to resell a foreclosure, they should always have the right to get rid of it without waiting the 90 days.
7:29am • #1
1 Featured Post

Love your story from the past. Flipping indeed. You called their bluff and they backed down. Good job.
7:38am • #2
730,035 Points 15 Featured Posts Outside Blog Called Shot Master

Mike, the extension should help out a lot of people get FHA loans. I haven't heard that flipping a property is illegal. In the past the buyer may not have been able to get an FHA loan, but could have pursued alternative financing.
8:09am • #3
305,492 Points 8 Featured Posts Outside Blog Attended Rain Camp

Donna, I agree. You have a problem you should be able to get rid of that problem ASAP.

Ron, I was merely pointing out a flaw in their thought process... ha.

Ron and Mike, Flipping properties was considered illegal if we buy and sell for a profit without adding any value to the property according to the IG and the FBI years ago. Don't know if they still feel that way. When you purchase and fix up then sell that isn't considered flipping though some TV shows would like to call it that.

Thanks for commenting. I appreciate it.
4:06pm • #4
249,448 Points 1 Featured Post Outside Blog

That is good news.  I hope it continues as well.
6:27pm • #5


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