| Author |
Previous Topic | Next Topic |
|
BankNegotiator
171 Posts |
 Posted - 08/11/2008 : 11:06:04 AM
|
Example:
John is getting old in years. He writes a QC Deed to his kid Steve, for 50% ownership in the property which they file with the county. He then and puts in his will that Steve gets the over 50% after his death.
3 weeks later they decide to sell the home. The buyer is going to use FHA Financing.
With the whole FHA Seasoning thing does a 90-day countdown clock start from the day that Steve receives a 50% interest in the home? What exactly does 90-day Seasoing mean? Does it mean that there can be ZERO title changes for 90 days?
What if John owned the home before he got married to Jill, who is not on title (except for unrecorded dower rights) and then later the get a divorce. Judge says that Jill gets the house and a QCD for John's interest is conveyed to her. Jill can't afford the home and immediately places it on the market and gets an offer the next day? Does the deal have to wait 90 days because John had to QC to his wife at court order?
I hate this 90-Day crap. It should be removed. |
|
bancgroup
89 Posts |
Posted - 08/11/2008 : 11:27:48 AM
|
hud.gov
New Construction, Foreclosed properties and "relo" properties are exempt. These are the other Exceptions to 90-day Restriction
The following sales are exempt from the time restrictions provided by §203.37a:
• Sales by HUD of its Real Estate Owned
• Sales by other United States Government agencies of single family properties pursuant to programs operated by these agencies.
• Sales of properties by nonprofits approved to purchase HUD-owned single-family properties at a discount with resale restrictions.
• Sales of properties that are acquired by the sellers by inheritance.
• Sales of properties purchased by employers or relocation agencies in connection with relocations of employees.
• Sales of properties by state and federally charted financial institutions and Government Sponsored Enterprises.
• Sales of properties by local and state government agencies.
• Upon FHA’s announcement of eligibility in a notice (i.e., ML), sales of properties located in areas designated by the President as federal disaster areas, will be exempt from the restrictions of the property-flipping rule. The notice will specify how long the exception will be in effect and the specific disaster area affected.
Inapplicability of §203.37a to New Construction
The restrictions in 203.37a are not applicable to a builder selling a newly built home or building a home for a homebuyer wishing to use FHA-insured financing.
|
|
|
ownerop
389 Posts |
Posted - 08/11/2008 : 11:29:13 AM
|
quote:
Originally posted by BankNegotiator
Example:
John is getting old in years. He writes a QC Deed to his kid Steve, for 50% ownership in the property which they file with the county. He then and puts in his will that Steve gets the over 50% after his death.
3 weeks later they decide to sell the home. The buyer is going to use FHA Financing.
With the whole FHA Seasoning thing does a 90-day countdown clock start from the day that Steve receives a 50% interest in the home? What exactly does 90-day Seasoing mean? Does it mean that there can be ZERO title changes for 90 days?
What if John owned the home before he got married to Jill, who is not on title (except for unrecorded dower rights) and then later the get a divorce. Judge says that Jill gets the house and a QCD for John's interest is conveyed to her. Jill can't afford the home and immediately places it on the market and gets an offer the next day? Does the deal have to wait 90 days because John had to QC to his wife at court order?
I hate this 90-Day crap. It should be removed.
well it's not getting removed so get use to it. You will be fine, it does not mean 0 title changes. Original owner is still on title so you are fine. |
|
|
Captain Mortgage
1716 Posts |
Posted - 08/11/2008 : 11:35:22 AM
|
To my understanding of the rule. You will not be affected because there was no monetary exchange and only an Inter-Family transfer of title. Also the original owner is still on title. If you have to you can easily correct this by deeding John back off of title.
Are you having a problem with this scenario? Are they telling you it's a flip? Is an underwriter declining your loan? Or are you just looking for a hypothetical answer? |
|
|
| |
Previous Topic | Next Topic |
|
Search for: 
