I thought we had worked this one out! On Feb 1st of this year FHA agreed to temporarily allow funding on homes that were acquired by the current owner (bank/investor/seller) in less than 90 days IF the property met certain criteria. Now I hear some banks are still enforcing the 90 day flip rule-even for non-FHA loans! Why was this rule created in the first place? HUD recognized a few years ago that a minority of flippers (someone who purchases properties, then immediately sells for profit) were in cahoots with loan officers and appraisers and took advantage of innocent buyers (2 comments)
loan problems: What's YOUR Red Flags of Potential Deal Killers?
- 05/12/10 05:17 AM
I read a fellow AR member's post regarding an issue that came up and killed a deal while under contract. After 13 years in the biz, I've got a radar sense when a transaction is in trouble. Identifying these problems can help avoid delays and wasting everyone's time. Believe me, it's rare when I DON'T have some sort of problem associated with it. So for the agent who has not closed a lot of transactions, I'm going to share with you my Top 5 Red Flags of Potential Problems. I welcome you to add your red flags as well! 1-Loan officer doesn't call you (4 comments)