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

Reblogger Joe Cuchiara
Real Estate Broker/Owner with Higher Ground Real Estate

Excellent information!

Original content by Dave Sutton

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.

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Rainmaker
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Cherise Selley
Selley Group Real Estate, LLC - Colorado Springs, CO
Colorado Springs Realtor

Joe...thanks for the tidbit of information...sounds good for investors and FHA buyers alike...Cherise

Jan 15, 2010 11:47 PM #1
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