Hud announced today that as of February 1st, 2010 they are waiving the 90 day rule for sellers to be in title to a property, also know as the "flipping rule". This is good for 1 year and does have positive influence in the market place!!
As long as the buyer and seller are not related and as long as the seller is not increasing the sales price by more than 20%, there are no other requirements or restrictions to this waiver.
If a seller has increased the price by more than 20%, the lender has to 1)document by a second appraisal what improvements were done to the home to justify the increase, 2) order a property inspection and provide it to the purchaser.
This will help more buyers to purchase these foreclosed homes in a more timely manner and will help reduce the property inventory in the market.
Finally- Hud is listening and is making sense!!
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