WOW! To many REO, Inverse Purchase, Short Sale and Wholesale investors, prayers have been answered!
Our (now) friends at the FHA have just amended the 90 day seasoning/flipping rules! The laws previously insisted you hold title to a property for ninety days before even entering into a contract if you wanted to sell to a buyer using an FHA loan in Baltimore City, Baltimore County, Carroll County, Harford County or Howard County. You can read more information from Nick Gioia at his website.
Yeah yeah yeah, had they done this years ago, the economy may not be quite in the pooper like it is now, but nonetheless, this is big news to the creative real estate investor!
There’s certainly some “stipulations” on the process, but strangely enough, none of them seem too ridiculous… which is odd for HUD, but we’ll take it! (from the HUD website)
The waiver will take effect on February 1, 2010 and is effective for one year, unless otherwise extended or withdrawn by the FHA Commissioner. To protect FHA borrowers against predatory practices of “flipping” where properties are quickly resold at inflated prices to unsuspecting borrowers, this waiver is limited to those sales meeting the following general conditions: See more at NG Realty Group and check out the blog while you are there.