How do I structure a purchase of REO assets to avoid the FHA 90 day hold period.?

Asked by Steven Annis, 06484 Thu Mar 5, 2009

I am purchasing REO single family assets from financial institutions in bulk nationwide and then listing them with brokers to sell them individually to homeowners or individual investors. Is there a way to structure my purchase from the institution that will enable me to legally avoid the FHA 90 day hold rule if I get a buyer who wants an FHA loan. Is putting the properties into some kind of a RE trust an option?

Help the community by answering this question:

+ web reference
Web reference:

Answers

2
Luke Allison, , Asheville, NC
Thu Mar 5, 2009
Steven-

Unfortunately, no, you cannot do that. The 90-day Flip rule that was laxed recently has only to do when banks are reselling their REOs. Your buyers would have to wait 90 days to purchase your home via FHA. Now the postivies to this are such:
1) FHA loans are taking 45-60 days to close anyway so an extra 30 days is not too much in excess to you.
2) This rule does not apply to conventional financing so if your buyers have good credit, they can go that route.

Luke Allison
Flagstar Bank
828-777-8828
Luke.Allison@flagstar.com

Apply Online: flagstarloans.com/lallison
1 vote
Dan Ross, Agent, Southington, CT
Thu Mar 5, 2009
Steven,
The question you are asking is really a legal one, and is best suited for an attorney. I have to assume that since you are buying a lot of properties, that you have a good RE attorney. I suggest that you speak to him/her about this.
Web Reference:  http://www.danrossre.com
0 votes
Search Advice
Search
Ask our community a question

Email me when…

Learn more