CAN you buy AND FLIP

CAN you buy AND FLIP A FHA , OR FANNIE MAE OWNED HOME IN A WEEK NOW? I guess the real estate bubble making machine has now been fixed. How do you stop the buy and flippers from starting the silly price rise game again ? Easy, you hire real appraisers who can only find like value ,in the current neighborhood. S o if you paid $100,000 for this FHA or fannie mae home today , you might be hard pressed to get a $150,000 value for your buy , flip , and screw , program.There is a new policy change that will permit buyers to use FHA-insured financing to purchase HUD-owned properties, bank-owned properties, or properties resold through private sales without a mandated waiting period. This will allow homes to resell as quickly as possible, helping to stabilize real estate prices and to revitalize neighborhoods and communities, HUD explained in a statement. “As a result of the tightened credit market, FHA-insured mortgage financing is often the only means of financing available to potential homebuyers,” said Donovan. “FHA has an unprecedented opportunity to fulfill its mission by helping many homebuyers find affordable housing while contributing to neighborhood stabilization.” Donovan stressed that the change in policy is temporary and will include strict conditions and guidelines to assure that predatory practices are not exploited. The waiver will take effect on February 1, 2010 and is effective for one year, unless extended or withdrawn by the FHA commissioner. To protect FHA borrowers against predatory practices of “flipping,” where properties are quickly resold at inflated prices to unsuspecting borrowers, this waiver is limited to those sales meeting the following conditions: • All transactions must be arms-length, with no identity of interest between the buyer and seller or other parties participating in the sales transaction. • In cases in which the sales price of the property is 20 percent or more above the seller’s acquisition cost, the waiver will only apply if the lender meets specific conditions. • The waiver is limited to forward mortgages, and does not apply to the Home Equity Conversion Mortgage (HECM) for purchase program. The temporary policy waiver is one of several steps HUD is taking to alleviate property vacancies and community blight.The federal agency has awarded another $2 billion in Neighborhood Stabilization Program (NSP) grants to local communities and nonprofit housing developers across the country to combat the effects of abandoned homes by turning foreclosed properties into affordable housing projects. I hope this works as there are to many vacancies, and anything to help our industry , may be good , for the buyer , and the seller, these days . CAN you buy AND FLIP A FHA , OR FANNIE MAE OWNED HOME IN A WEEK NOW? I guess the real estate bubble making machine has now been fixed. How do you stop the buy and flippers from starting the silly price rise game again ? Easy, you hire real appraisers who can only find like value ,in the current neighborhood. S o if you paid $100,000 for this FHA or fannie mae home today , you might be hard pressed to get a $150,000 value for your buy , flip , and screw , program.There is a new policy change that will permit buyers to use FHA-insured financing to purchase HUD-owned properties, bank-owned properties, or properties resold through private sales without a mandated waiting period. This will allow homes to resell as quickly as possible, helping to stabilize real estate prices and to revitalize neighborhoods and communities, HUD explained in a statement. “As a result of the tightened credit market, FHA-insured mortgage financing is often the only means of financing available to potential homebuyers,” said Donovan. “FHA has an unprecedented opportunity to fulfill its mission by helping many homebuyers find affordable housing while contributing to neighborhood stabilization.” Donovan stressed that the change in policy is temporary and will include strict conditions and guidelines to assure that predatory practices are not exploited. The waiver will take effect on February 1, 2010 and is effective for one year, unless extended or withdrawn by the FHA commissioner. To protect FHA borrowers against predatory practices of “flipping,” where properties are quickly resold at inflated prices to unsuspecting borrowers, this waiver is limited to those sales meeting the following conditions: • All transactions must be arms-length, with no identity of interest between the buyer and seller or other parties participating in the sales transaction. • In cases in which the sales price of the property is 20 percent or more above the seller’s acquisition cost, the waiver will only apply if the lender meets specific conditions. • The waiver is limited to forward mortgages, and does not apply to the Home Equity Conversion Mortgage (HECM) for purchase program. The temporary policy waiver is one of several steps HUD is taking to alleviate property vacancies and community blight.The federal agency has awarded another $2 billion in Neighborhood Stabilization Program (NSP) grants to local communities and nonprofit housing developers across the country to combat the effects of abandoned homes by turning foreclosed properties into affordable housing projects. I hope this works as there are to many vacancies, and anything to help our industry , may be good , for the buyer , and the seller, these days .