Effective for purchase contracts dated February 1, 2010 and after, Borrowers may use FHA-insured financing to purchase previously foreclosed properties WITHOUT the 90-day waiting period:
HUD-owned properties, Bank-owned properties, 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.
To protect FHA Borrowers against predatory practices of flipping where properties are quickly resold at inflated prices, this waiver is limited to sales meeting ALL of the following requirements:
All transactions must be arms-length, with no identity of interest between the buyer and seller or other parties participating in the sales transaction.
Seller must hold title to the property LLCs, corporations or trusts that are serving as sellers were established and are operated in accordance with applicable state and Federal Law.
No pattern of previous flipping activity exists for the subject property, as evidenced by multiple title transfers (more than 2) in the last 12 months as indicated on the Appraisal report.
Property was marketed openly and fairly via MLS, auction, For Sale by Owner or developer marketing (assignment of contract not permitted.
If the sales price of the property is 20% or more above the seller's acquisition cost:
1)Increase in value must be justified by supporting documentation and/or second appraisal verifying seller has completed sufficient legitimate renovation, repair and rehab work to substantiate the increase in value or in cases where no work is performed, the appraiser provides an appropriate explanation of the increase in value since prior transfer.
2)Second appraisal is always required if 100% increase in purchase price.
3)Property inspection is required and MUST be provided to the purchaser before closing. Borrower will be charged for the inspection. Non-FHA approved inspectors or 203 k consultants are allowed. At a minimum the inspection must include ALL of the following: Property structure including foundation, floor, ceiling, walls and roof. Exterior including siding, doors, windows, appurtenant structures such as decks and balconies, walkways and driveways, roofing, plumbing systems, electrical systems, heating and air conditioning systems, all interiors, all insulation and ventilation systems as well as fireplaces and solid fuel burning appliances. Inspector must not have any interest in the property or relationship with the seller and must not receive compensation for the inspection from any party other than the lender. Inspector may not compensate anyone for the referral, may not receive any compensation for referring or recommending contactors to perform any repairs recommended, and may not be involved in performing any repairs recommended by the inspection.
Anna-Lise TroupTucson REALTOR/Davis-Monthan AFB PCS Expert
Realty Executives
(520) 906-5659
---
Tucson Real Estate, Condos, Homes for SaleFree Relocating to Tucson, AZ Information KitDavis-Monthan AFB Relocation Information---
# posted by
Anna-Lise Troup @ 10:01 AM
