Shopping Cart
Your Cart is Empty
Quantity:
Subtotal
Taxes
Shipping
Total
There was an error with PayPalClick here to try again
CelebrateThank you for your business!You should be receiving an order confirmation from Paypal shortly.Exit Shopping Cart

Allegiance‚Äč Properties          

 The Company of Choice when it comes to Property Management                         

Blog                                                             

Investors are happy with new FHA flip rules

Posted by James Trammell on January 25, 2010 at 11:20 PM

HUD No. 10-011

Lemar Wooley

(202) 708-0685 FOR RELEASE

Friday

January 15, 2010

 

HUD TAKES ACTION TO SPEED RESALE OF FORECLOSED PROPERTIES TO NEW OWNERS

Measure to help bring stability to home values and accelerate sale of vacant properties

WASHINGTON - In an effort to stabilize home values and improve conditions in communities where foreclosure activity is high, HUD Secretary Shaun Donovan today announced a temporary policy that will expand access to FHA mortgage insurance and allow for the quick resale of foreclosed properties. The announcement is part of the Obama administration commitment to addressing foreclosure. Just yesterday, Secretary Donovan announced $2 billion in Neighborhood Stabilization Program grants to local communities and nonprofit housing developers to combat the effects of vacant and abandoned homes.

"As a result of the tightened credit market, FHA-insured mortgage financing is often the only means of financing available to potential homebuyers," said Donovan. "FHA has an unprecedented opportunity to fulfill its mission by helping many homebuyers find affordable housing while contributing to neighborhood stabilization."

With certain exceptions, FHA currently prohibits insuring a mortgage on a home owned by the seller for less than 90 days. This temporary waiver will give FHA borrowers access to a broader array of recently foreclosed properties.

"This change in policy is temporary and will have very strict conditions and guidelines to assure that predatory practices are not allowed," Donovan said.

In today's market, FHA research finds that acquiring, rehabilitating and the reselling these properties to prospective homeowners often takes less than 90 days. Prohibiting the use of FHA mortgage insurance for a subsequent resale within 90 days of acquisition adversely impacts the willingness of sellers to allow contracts from potential FHA buyers because they must consider holding costs and the risk of vandalism associated with allowing a property to sit vacant over a 90-day period of time.

The policy change will permit buyers to use FHA-insured financing to purchase HUD-owned properties, bank-owned properties, or properties resold through private sales. This will allow homes to resell as quickly as possible, helping to stabilize real estate prices and to revitalize neighborhoods and communities.

"FHA borrowers, because of the restrictions we are now lifting, have often been shut out from buying affordable properties," said FHA Commissioner David H. Stevens. "This action will enable our borrowers, especially first-time buyers, to take advantage of this opportunity."

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:

All transactions must be arms-length, with no identity of interest between the buyer and seller or other parties participating in the sales transaction.

In cases in which the sales price of the property is 20 percent or more above the seller's acquisition cost, the waiver will only apply if the lender meets specific conditions.

The waiver is limited to forward mortgages, and does not apply to the Home Equity Conversion Mortgage (HECM) for purchase program.

Specific conditions and other details of this new temporary policy are in the text of the waiver, available on HUD's website.

Categories: None

Post a Comment

Oops!

Oops, you forgot something.

Oops!

The words you entered did not match the given text. Please try again.

Already a member? Sign In

520 Comments

Reply Judybic
1:04 AM on October 23, 2021 
sildenafil 5mg price
Reply Janebic
12:43 AM on October 23, 2021 
tadalafil online paypal
Reply Boobic
9:32 PM on October 22, 2021 
viagra super active
Reply Kiabic
1:41 PM on October 22, 2021 
purchase viagra online in usa
Reply Wimbic
12:39 PM on October 22, 2021 
prescription cialis prices
Reply Ugobic
10:58 AM on October 22, 2021 
tadalafil generic from canada
Reply Miabic
9:35 AM on October 22, 2021 
prescription cialis uk
Reply Lisabic
9:24 AM on October 22, 2021 
sildenafil otc uk
Reply Jimbic
8:49 AM on October 22, 2021 
sildenafil us pharmacy
Reply Carlbic
7:34 AM on October 22, 2021 
discount cialis generic
Reply Paulbic
7:04 AM on October 22, 2021 
canadian pharmacy tadalafil 20mg
Reply Annabic
7:03 AM on October 22, 2021 
can i buy viagra online legally
Reply Teobic
6:59 AM on October 22, 2021 
sildenafil 50mg best price
Reply Jasonbic
2:14 AM on October 22, 2021 
stromectol tablets uk sildenafil generic canada generic ivermectin for humans generic viagra 100mg pills stromectol ivermectin tablets cialis 60 mg price sildenafil 50 mg buy online price cost of ivermectin cream cialis pills 5 mg where to buy tadalafil in usa
Reply Joebic
11:49 PM on October 21, 2021 
buy stromectol online
Reply Alanbic
2:23 PM on October 21, 2021 
tadalafil tablets 10 mg price in india where can you get female viagra where to buy viagra online in canada ivermectin drug sildenafil discount price buying viagra online illegal viagra capsule online cialis 100mg canada tadalafil tablets 20mg cialis generic buy online
Reply Eyebic
1:33 PM on October 21, 2021 
what is the cost of cialis ivermectin 2ml online cialis sildenafil price singapore real viagra online cialis online price comparison sildenafil tablets 100mg price cheapest price for generic cialis how can i get cialis without a prescription where to buy viagra in south africa
Reply Sambic
12:23 PM on October 21, 2021 
generic cialis online without prescription
Reply Boobic
10:51 AM on October 21, 2021 
tadalafil india online
Reply Joebic
10:46 AM on October 21, 2021 
lowest price cialis 20mg
0