FHA Helps speed up foreclosure sales!

By
Real Estate Agent with Kettley Realtors

In an effort to speed up the sale of foreclosure properties, the FHA has lifted the 90 day seasoning rule for 1 year.

Huh? Seasoning? You mean paprika? Garlic? No....parsley, that's a seasoning. Right? Well, no. Whean it comes to real estate, the term "seasoning" refers to how long a buyer keeps a property before they sell it. The longer a buyer holds onto a property - the more seasoned it is. If you buy a "fixer upper" or "foreclosure" property you want to flip - you might run into problems when they buyer tries to get financing. FHA will not allow the new buyer to get mortage insurance if the current owner bought it less than 90 days ago. This makes it difficult for investors with cash to buy foreclosed properties -then turn around and sell them to someone who needs financing.

In an effort to move these properties from owner to owner, FHA has repealed this 90 day rule for 1 year - making it easier to move forelcosed properties. For a full explanation of the rule change, visit the US Department of Housing press release about the 1 year repeal of the 90 day seasoning rule.

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Illinois
Tags:
foreclosures

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