FHA 90 Day Seasoning (the Flip Rule) Waived as of Feb 1st, 2010

[Ted Harris]

YES, it's true! This waiver, which takes effect Feb 1st of 2010, is limited to those sales meeting the following conditions ....

here's the HUD link with specifics:
http://www.hud.gov/offices/hsg/sfh/waivpropflip2010.pdf

[James Ward]

WOW! When I got up this morning I had many emails and a few calls about this. So, I sat and starting reading. It only got better and better from there.

Here is how I look at it:

This will allow more Short Sales to be purchased and sold by investors. While you will notice that a few items might cloud the issue, I think it will all-in-all be a great step.

It might cause a little trouble for rehabbers that buy from Short Sale investors, but I think they might be able to also get around the issues. (By showing the value indeed has changed.)

As for the section about "a pattern of flipping", it really does not constitute a pattern if a Short Sale investor purchases the property and resells the property.

As for the added value section: Well, if I purchase a property at a discounted value then sell that same property to another Buyer at market value, the added value can be shown simple by getting an appraisal.

I agree that more scrutiny will become apart of any flipped property, but as long as the values are true, no one "should" have anything to worry about.

But all-in-all, I hope this will open the doors for more transactions.