All Forum Posts by: Aman S.

I want to start buying non performing notes on residential property in Northern VA? Any guidance on how to get started?
Thanks

This is from Wells memo:
On January 15, 2010, HUD issued Waiver of Requirements of FHA regulations 24 CFR 203.37a(b)(2), allowing a one year waiver to its flip policy on transactions where the property seller is owner-of-record 90 days or less.
In that Waiver, HUD provided additional requirements for FHA flip transactions where the sale price of the subject property has increased by 20 percent or more above the seller’s original acquisition cost.

Wells Fargo Funding will not purchase FHA flip transactions when the sales price of the subject property is 20 percent or more above the seller’s acquisition cost1

. This includes those transactions complying with the additional conditions set forth in the Waiver.
1The property seller’s acquisition cost is defined as what the seller paid to acquire the subject property. It does not include the cost of any repairs or improvements made to the property after purchase.
Stay away from Wells and go to your local lender. Very few comply with FHA guidelines i.e. 2 appraisals and inspection.

My suntrust lender told me that don't have their own internal guidelines on less than 90 day flips they just follow HUD guideleins.