pin

Property flipping waiver extended

Posted by Jolenta Averill on Tuesday, May 19th, 2009 at 10:15am.

temporary property flipping waiver extendedFederal Housing Commissioner Brian D. Montgomery has extended the temporary property flipping waiver to May 10, 2010.  Under  the waiver, homes that were foreclosed on and are being sold by the mortgagee or on its behalf may be purchased by FHA borrowers without regard to the 90-day seasoning period. The waiver does not apply to entities that purchase foreclosures either singly or in bulk for resale.  Subsequent sales of such properties will continue to be subject to the standard regulatory requirements.   

The waiver expires for all loans for which the sales agreements were signed by the seller and buyer on or before May 10, 2010.

What all this means is that a person who purchases a home (more than likely a home that is in foreclosure or at a sheriff sale) with the idea of putting a little elbow grease into it and then putting it back on the market to try to resell it would have to be listed on the title of the home for a minimum of 90 days prior to the date of an offer to purchase for that property IF the person buying the home is financing it with an FHA loan. FHA will make an exception (as stated above) for a bank or it's representative who is attempting to sell a foreclosed or repossessed home.


For more information on buying or selling distressed properties, please call Lake & City Homes broker owner Jolenta Averill at (563) BUY-SOLD (563-289-7653).

Hi, and welcome to our Madison real estate blog. Whether you're a consumer, journalist or Realtor, we encourage you to share your thoughts by leaving a comment. Here you'll find relevant local and national real estate information, as well as market statistics, insight, and information about a variety of neighborhoods and real estate listings. If you'd like more information about anything in particular, please use the contact form and I'll be happy to help.

Jolenta Averill, Principal
Lake & City Homes Realty
(563) BUY-SOLD

Leave a Comment