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KHufford
5940 Posts |
 Posted - 08/26/2008 : 2:12:25 PM
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I have a file that was actually a deed in lieu. Its an FHA purchase loan now and onyl been about 2 months from the investor taking the property over.
According to my UW this doesnt qualify for the flip waiver and must wait 90 days...anyone else run across this? I assume we are out of luck?
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SoCalRay
2698 Posts |
Posted - 08/26/2008 : 2:23:00 PM
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yes, ran into that before
think they took care of that in the new bill. but that does not help you.
91 days is the rule until October 1st
And the exception will only be on bank owned properties |
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KHufford
5940 Posts |
Posted - 08/26/2008 : 2:27:48 PM
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Ok just making sure - thats what the UW told me too. Only Federally insured bank owned ones are allowed prior to 90 days.
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americanheartlan
2236 Posts |
Posted - 08/26/2008 : 2:36:25 PM
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| I think you can get an exception if the investor bought a foreclosed property. |
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KHufford
5940 Posts |
Posted - 08/26/2008 : 2:52:19 PM
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quote:
Originally posted by americanheartland
I think you can get an exception if the investor bought a foreclosed property.
Because this was actually a deed in lieu it wont fly .....from what I am told.
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fundid
161 Posts |
Posted - 08/26/2008 : 7:01:23 PM
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quote:
Originally posted by KHufford
Ok just making sure - thats what the UW told me too. Only Federally insured bank owned ones are allowed prior to 90 days.
Good to know, another reason I want to go with a Fed Charter, they seem to have all the fun. |
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pressbox2226
34 Posts |
Posted - 08/26/2008 : 7:15:13 PM
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Hey, Kyle
I have read several of your comments and threads. Can you share some of your best practices and marketing tips that your office is using to generate more business, specially FHA loans. Previously you mention, co-worker closing several loans per month and that could be true; please share any tips or suggestions.
Pressbox |
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Mandyvilla
3405 Posts |
Posted - 08/26/2008 : 7:16:55 PM
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| Does anyone contact the HOC anymore? Or the online, real time text messaging for Q & A? Information on both are on the HUD site - I did the text messaging from my home pc.......and use someone else's name. This week I am Carl Pruitt (j/k Carl, I am using Mr. VA's name). |
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KHufford
5940 Posts |
Posted - 08/28/2008 : 10:04:52 AM
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quote:
Originally posted by Mandyvilla
Does anyone contact the HOC anymore? Or the online, real time text messaging for Q & A? Information on both are on the HUD site - I did the text messaging from my home pc.......and use someone else's name. This week I am Carl Pruitt (j/k Carl, I am using Mr. VA's name).
My UW is actually...right now. Will post results
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Captain Mortgage
1721 Posts |
Posted - 08/28/2008 : 10:08:20 AM
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| If it is a bank, the fact that it was a deed in lieu shouldn't matter. I've never run into this situation, but I believe that it would be the same guideline. If your U/W is making you wait, make sure to re-write the purchase contract. The offer/appraisal/prelim/etc. needs to be dated the 91st day. I've had a few u/w's turn loans down for that. |
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KHufford
5940 Posts |
Posted - 08/28/2008 : 10:10:24 AM
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It is because its an investment group that buys notes...they are not a federally regulated bank, which would allow for exception.
My argument is that they bought the not and serviced the loan since October. It was deeded back fromthe homeowner in July...so we are trying to argue its technically not a flip.
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financeone
1635 Posts |
Posted - 08/28/2008 : 11:05:49 AM
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Looks like it would fit waiver according to below:
HUD Guidelines on Property Flipping
HUD has established certain requirements regarding the eligibility of properties to be financed with Federal
Housing Administration (FHA) mortgage insurance. The requirements address property “flipping”, the practice
whereby a property recently acquired is resold for a considerable profit with an artificially inflated value, often
abetted by a lender’s collusion with the appraiser.
The new requirements will make flipped properties ineligible for FHA-insured mortgage financing, thus
precluding FHA home purchasers form becoming victims of predatory flipping activity.
If the seller of a property has acquired that property less than 12 months before the purchase agreement was
executed, the following rules apply:
• Re-sale with 90 days or less: The property is not eligible for a mortgage insured by FHA.
• Re-sale occurs between 91 days and 180 days: If the re-sale price has doubled (100% or more over the
price paid by the seller when the property was acquired), a second independent appraisal supporting the
sales price is required.
• Exceptions: The re-sale restrictions do not apply to the properties acquired by an employer or relocation
agency in connections with relocation of an employee or for property re-sales by HUD under its REO
program. For additional clarification, please refer to HUD Mortgagee handbook 4000.2 Rev-3 or
Mortgagee Letter 2003-07.
Per the news release issued on June 13, 2008, FHA will insure foreclosed properties marketed and sold by
property disposition firms on behalf of lender and will no longer be subject to the 90-day waiting period. All
other re-sales are still subject to the rules listed above. Individuals that intend to occupy as their Primary
Residence must purchase the subject property. This is a temporary policy and is only in effect until
June 13, 2009. |
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