FHA Lifts 90 Day Seasoning Rule for 1 Year!
Jun 14th, 2008 | By cboatright | Category: Short Sale NewsYup… you read that right!
This is going to be an AMAZING here especially for all us short sale investors. Just think how many different programs FHA provides first time buyers to qualify to buy a house. Now take those buyers and match them up with all your short sale approved houses and what do you get?
Short Sale Buyer FRENZY!!!!!
Where do you think are some of the BEST places to find FHA Buyers? List all your answers in the Comments Section below.
http://money.cnn.com/2008/06/13/real_estate/property_flipping.ap/index.htm?section=money_latest
*****
Property-flipping rule suspended
The White House temporarily suspends a rule that imposes a 90-day waiting period before foreclosed homes can be sold to receive government loans.
See all http://www.CNNMoney.com RSS FEEDS (close)
June 13, 2008: 4:17 PM EDT
WASHINGTON (AP) — The Bush administration is temporarily suspending a 5-year-old rule intended to deter property flippers, as part of an effort to help speed the sale of foreclosed properties.
For one year, the Federal Housing Administration will no longer impose a 90-day waiting period before foreclosed properties can be sold to receive government-backed loans.
The policy was put in place in 2003 to deter property "flipping" schemes, in which buyers are overcharged for foreclosures or other distressed properties. But the surge in vacant properties resulting from borrowers who were unable to afford their mortgages has become a far more pressing concern.
"A glut of foreclosed and abandoned homes harms neighborhoods, frustrates homebuyers and delays a community’s recovery," FHA commissioner Brian Montgomery said in a prepared statement.
The new policy "will allow homebuyers to purchase these homes in much greater numbers and ease the excess supply of unsold homes," Montgomery said.
Nationwide, 261,255 homes received at least one foreclosure-related filing in May, up 48% from the same month last year, and up 7% from April, foreclosure listing company RealtyTrac Inc. said Friday.
This is some text prior to the author information. You can change this text from the admin section of WP-Gravatar To change this standard text, you have to enter some information about your self in the Dashboard -> Users -> Your Profile box. 
(5 votes, average: 1.6 out of 5)
Loading ...
Print This Post
That is great news for the short sale business!
Now we can penetrate first home buyer markets again!
Cory
That is fantasic news! thank you for posting it!
JB Beyer
Coastal Mitigation Partners LLC
http://www.resolveteam.com
Still true is the fact that the majority of all retail buyers for residential homes are controlled through Realtors that have already established relationships with those buyers.
MLS exposure is the cornerstone of brining buyers through your houses.
We now have the tools to turn the neighborhoods back to productive communities
Developing and maintaining relationships with local mortgage brokers is an excellent way to tap into the FHA buyer market. Some buyers just don’t want to work with a Realtor or haven’t found what they want in their search with a Realtor. Most mortgage broker who have pre-approved the buyers with an FHA loan would be greatful to receive updates or know of a source they can go to for properties properties available that may work for his/her borrower.
Host a first time homebuyer seminar. Either you conduct it or have a mortgage broker come in and give a presentation to include down payment assistance programs which would allow your new potential homeowners to come in with as little as $500.
It’s interesting because its an implicit admission that the government’s policies are actually hindering the market’s recovery. It’s very good news indeed.
This is great news for us short sale investors! This seasoning issue was killing many deals in the market, especially short sales and foreclosures, which are usually ‘better’ deals financially for buyers looking for a good deal….. Thanks for sharing this good news!
P.S.– Running a mortgage comapny for the past 5yrs and getting into short sales recently, I can personally acknowledge mortgage brokers as a great source for FHA buyers and also for getting referals for homeowners who need our services for short sales…..
Everyone take a look at the new blog post.
http://www.shortsalefundamentals.com/blog/2008/06/16/foreclosed-properties-only-dang-it/
Whoa…before we break out the champage everyone, read the article again. It says, and I quote “…for one year, the Federal Housing Administration will no longer impose a 90-day waiting period before foreclosed properties can be sold to receive government-backed loans.”
The operative word is “foreclosed” which means REOs. So, this is a gift to lenders and their asset disposition firms. It would appear this offers no benefit to short sale flippers.
JJ