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:
- Waiver takes effect February 1st, 2010 for a period of one year unless extended.
- Investors are now exempt from the 90-day seasoning rule.
- All transactions must me arms-length.
- No identity of interest can exist between buyer and seller.
- 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.
- 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.