HUD 's new temporary policy will expand access to FHA mortgage insurance and allow for the quick resale of foreclosed properties. With certain exceptions, FHA currently prohibits insuring a mortgage on a home owned by the seller for less than 90 days. This temporary waiver will give FHA borrowers access to a broader array of recently foreclosed properties"
The policy change will permit buyers to use FHA-insured financing to purchase HUD-owned properties, bank-owned properties, or properties resold through private sales. This will allow homes to resell as quickly as possible, helping to stabilize real estate prices and to revitalize neighborhoods and communities.
Now may be an excellent time to purchase a foreclosure as a short term investment.
The waiver will take effect on February 1, 2010 and is effective for one year, unless otherwise extended or withdrawn. This waiver is limited to those sales meeting the following general conditions:
- All transactions must be arms-length, with no identity of interest between the buyer and seller or other parties participating in the sales transaction.
- In cases in which the sales price of the property is 20 percent or more above the seller's acquisition cost, the waiver will only apply if the lender meets specific conditions.
- 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 of this new temporary policy are in the text of the waiver, available on waiver on HUD.gov.
If you are looking to purchase foreclosures, short sales or other real estate in Thurston, Mason, Pierce, Lewis counties in Washington call Karin Zeigler, Re/MAX Four Seasons, Certified Distressed Property Expert. 360-870-6249. Go to my web site at www.karinzeigler.com