HUD Extends Waiver for Anti-Flipping Rule
Monday, May 18th, 2009|
SOURCE : NATIONAL ASSOCIATION OF REALTORS
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On May 15, 2009, the US Department of Housing and Urban Development (HUD) announced that it is temporarily extending the property flipping waiver to May 10, 2010 for Federal Housing Administration (FHA) loans. Under the waiver, homes that were foreclosed on and are being sold by the mortgagee or on its behalf may be purchased by FHA borrowers without regard to the 90-day seasoning period. The waiver does not apply to entities that purchase foreclosures either singly or in bulk for resale. Subsequent sales of such properties will continue to be subject to the standard regulatory requirements. HUD first announced the waiver on June 9, 2008, and the waiver was to be in effect for only one year. HUD exempted from the property flipping rules properties sold by HUD through its Real Estate Owned activities, new homes being sold by builders and properties being sold by relocation companies and the property owner’s employer as part of a job relocation. Certain properties were exempted from this rule.
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