HUD Makes it easier to finance a foreclosure using FHA!

By
Real Estate Agent with Real Living / Home Realty 29202

HUD TAKES ACTION TO SPEED RESALE OF FORECLOSURES

FHA currently prohibits insuring a mortgage on a home owned by the seller for less than 90 days. However, HUD announced this week, a new temporary wavier of this rule to enable the financing of foreclosures and well as flips.  The waiver will take effect on February 1. 2010 and is effective for one year, unless otherwise extended or withdrawn by the FHA Commissioner.

Limits to waiver:

  1. All transactions must be arms length.
  2. In cases in which the sales price of the property is 20% or more above the seller's acquisition cost, the waiver will only apply if the lender meets certain specific conditions.
  3. The waiver is limited to forward mortgages, and does not apply to the Home Equity Conversion Mortgage (HECM) for purchase program. Specific conditions and other details are in the text of the waiver at www.hud.gov

Happy serving and selling in 2010!

close

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Topic:
Mortgage / Finance
Location:
Kentucky
Tags:
fha loans on foreclosures

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Rainmaker
238,147
Jerri McCombs, Broker
Dogwood Real Estate Services - Hendersonville, NC
Hendersonville NC Relocation

this is a great thing for us all, trying to move homes through for investors and save the sellers from complete disaster.

Yeah!

Jan 19, 2010 02:24 AM #1
Rainer
87,698
Aaron Cullen
Brokers Inc. Residential Real estate - Folsom, CA
Folsom, El Dorado Hills & Sacramento Real Estate &

Been waiting for this one Karen!  The vast majority of my deals in 2009 were FHA.  Good to see they are closing out this limitation.

Jan 19, 2010 02:27 AM #2
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Rainmaker
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Karen Pannell

Owensboro KY Real Estate -270-903-2167 Homes, Cond
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