Great News! New HUD ruling will help your investors. Read on....

By
Mortgage and Lending with Mortgage Resource Plus NMLS LO#138228

 

On January 15th HUD announced the wavier of the 91 day rule. The 91 day rule will take a rest for about 1 year now. Feb. 1, 2010 to Feb. 1 2011. Great news is that those investors that have their heart it improving properties and selling to those people that want to move right into a home do not have to wait to sign a PA on day 91. This means that the houses don't have to sit. Sooner sales then later are always better. Here are the stipulations:

 Here are the 6 things you need to know about these changes:

  1. Waiver takes effect February 1st, 2010 for a period of one year unless extended.
  2. Investors are now exempt from the 90-day seasoning rule.
  3. All transactions must me arms-length.
  4. No identity of interest can exist between buyer and seller.
  5. If sale price is 20% or more of the seller's acquisition cost, the lender must:
    a. provide supporting documentation and/or a second appraisal and
    b. order an inspection of the property and provide it to the buyer.
  6. The waiver is limited to forward mortgages only.


To read the text of this waiver and specific details: http://www.hud.gov/offices/hsg/sfh/waivpropflip2010.pdf

The hope of stabilizing the market and not having homes on the market as long should be a move slowly in the right direction.

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Rainmaker
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Natalie De Leo

Former Realtor now Mortgage Consultants
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