The Mortgage Daily

As many of you know, the "exemption" of the anti-flipping provision regarding foreclosure properties was set to expire next month. It has been extended - and corrected as follows:

"Federal 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. "

NOTE: This exemption does NOT apply to foreclosure properties that are being sold by private individuals or investment companies! This has tripped some of you up...

If you have a buyer that is purchasing a foreclosure, unless it is being sold by a bank or lender - you have to WAIT 90 DAYS before it will be eligible! Sorry, no exceptions, and we have confirmed this numerous times with HUD.

Chip Cummings-FHA Update - FHA Lending