The FHA 90 day flip rule is hampering business. 2 reasons to start with...
1. I don't know how other states work, in MI we have to file a Principle Property Exemption form by May 1st or the property taxes go up as being non-homestead.
I listed a beautiful home that is a flip home. I have had 2 people want to write offers but backed away when they learned the FHA rule. This home can not sell FHA until 050408. Their taxes will more than double if they purchase this home.
I can't even look at a FHA offer until 5/4/08, that's 4 days past the property tax file time.
2. Even if MI changes the tax rule, that home can't be sold until 050408, the purchasers may find another home before then. The seller again lost the purchaser because they had to wait 90 days.
Granholm passed a bill which allows 2 Principle Residence Exemptions as long as the sellers move, the former home is listed for sale and vacant. This is great for owner sellers. This bill allows this action for 1-3 years.
Flippers are fixing up neighborhoods, creating movement in the economy and getting punished for doing so.
How does this rule get changed?????
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