HUD Lifts the 90 day ban on reselling homes. So What?

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Education & Training with HD Realty BK662006

HUD Lifts the 90 day ban on reselling homes. So What?

There are quite a few buyers who do not want to or cannot wait for a short sale or don't want to mess with all the red tape involved in an REO. Wouldn't it be nice if there were a NORMAL seller with a NICE house that can close in 30-45 days? Guess what? There are!!! They're the investors that are buying the foreclosures, rehabbing them, and then putting them back on the market. They are not evil, they are repairing the housing stock that normal lenders would never lend on due to condition. But they were being penalized by the fact that your Buyer couldn't get an FHA loan just because the seller hadn't owned it for 90 days yet.

Well, as of February 1st they're lifting that restriction (at least for a year). There still are some hoops to jump through

1) must be an arms-length transaction

     a. seller must be legal title holder (no assignments)

     b. if seller is a trust, corp, or LLC, must be legal and registered

     c. no pattern of previous flips on the property (12 month lookback, no "chains"

     d. property must be openly marketed in MLS, auction, FSBO (no pocket listings)

2) if the property sales price is 20% or more above the acquisition cost, then the buyer's lender must justify their underwriting by:

     a. including supporting documentation or a second appraisal about why the property value increased or the   repairs that were made on it AND

     b. orders a property inspection and gives a report to the buyer. The buyer CAN be charged for this report.

If you want to read the actual HUD release, CLICK HERE

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Re-Blogged 2 times:

Re-Blogged By Re-Blogged At
  1. Roy Kelley 01/16/2010 05:30 AM
  2. Rob Arnold 01/16/2010 10:08 AM
Topic:
Mortgage / Finance
Location:
Florida Seminole County
Groups:
All Things Florida
Seminole County Florida
Real Estate Instructors
Tags:
investment
fha
financing
hud
mortgage

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Rainmaker
5,621,404
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Thanks. I posted your blog on my Facebook wall. Have a great weekend.

Jan 16, 2010 05:34 AM #1
Rainer
37,055
Dave Humphrey, Broker
RE/MAX Marketplace - Celebration, FL
Real Estate Advice You Can TRUST!

This is good news here in Flkorida where quite a few short term investors have upgraded homes for quick resale.

Jan 16, 2010 06:00 AM #2
Rainmaker
84,468
Terri Adams-Scott
J. Rockcliff, REALTORS - Walnut Creek, CA
Realtor, Walnut Creek CA Real Estate

Thanks for posting and I'll check out the HUD site. 

Jan 16, 2010 06:54 AM #3
Rainmaker
1,038,771
Rob Arnold
Sand Dollar Realty Group, Inc. - Altamonte Springs, FL
Metro Orlando Full Service - Investor Friendly & F

This is great news.  How can we get this relief to be permanent?  Re-blogged.

Jan 16, 2010 10:16 AM #4
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Rainmaker
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Andrea "Andy" Tolbert

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