Home shoppers! FHA lifts 90-day ban on sales of foreclosures to FHA buyers

By
Real Estate Agent with Windermere Lloyd Tower

Up until now, someone who bought a home at a foreclosure auction was prohibited from selling it to an FHA financed borrower for 90 days, a policy that made "flipping" less attractive because it limited quick sales to those who could buy with conventional financing.  HUD has just announced the temporary (beginning 2/1) suspension of the 90 day waiting period, so you can buy, too.   

Full press release is here It's described as a temporary lifting of the ban on selling property owned for less than 90 days to an FHA insured borrower, which had the effect of reducing the marketability of foreclosed homes purchased by investors.

Does that mean the FHA-financed borrower should or could buy homes to flip?  Not really.  FHA financing is designed for owner-occupied purchases. 

Does that mean an FHA financed buyer can realistically consider buying a foreclosed home that's been purchased by an investor and fixed up for sale?  Yes, and that's the real benefit.

close

Re-Blogged 2 times:

Re-Blogged By Re-Blogged At
  1. Vickie Nagy 01/15/2010 09:32 AM
  2. Joe Cuchiara 01/15/2010 11:53 AM
Topic:
ActiveRain Community
Tags:
fha
home buyer
home buying
home financing
home loans
fha loan
fha mortgage
mortgage
fha financing

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Rainmaker
120,496
Joe Cuchiara
Higher Ground Real Estate - Colorado Springs, CO

Dave, this is great news! Seems common sense that we need to move the inventory from for sale to sold. Good for FHA.

Jan 15, 2010 09:27 AM #1
Rainer
115,542
Renee L. Norton
Birmingham, AL

This is good news.  Many buyers who are not in a position to buy and renovate a home aregreat candidates to purchase the home after revocations.

Jan 15, 2010 09:29 AM #2
Rainmaker
1,402,753
Vickie Nagy
Coldwell Banker Residential Real Estate - Palm Springs, CA
Vickie Jean the Palm Springs Condo Queen

Dave, thanks for spreading this great news. We have so many motivated FHA buyers.

Jan 15, 2010 09:35 AM #3
Rainmaker
153,060
Mary Lockman
Windermere Real Estate Methow Valley - Winthrop, WA
Methow Valley Real Estate

Dave you are right on the mark on the benefits, thank you for alerting us!

Jan 15, 2010 09:43 AM #4
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Dave Sutton

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