Comments on: FHA 90-Day Rule http://www.123flip.com Education for the Serious House Flipper Fri, 10 Feb 2012 04:32:24 -0800 http://wordpress.org/?v=2.8.4 hourly 1 By: L. Peterson http://www.123flip.com/education/fha-90-day-rule/comment-page-1#comment-7026 L. Peterson Fri, 21 Oct 2011 18:49:43 +0000 http://www.123flip.com/?page_id=640#comment-7026 According to Wells Fargo, there is a flip rule for conventional loans. We are in the process of a renovation/conventional loan and found about this the hard way. Less than a year and more than 15% and we have to pay for a second appraisal. Our loan officer never mentioned this and neither did our real estate agent. We really want the house so we paid for it. Just wanted to let others know. According to Wells Fargo, there is a flip rule for conventional loans. We are in the process of a renovation/conventional loan and found about this the hard way. Less than a year and more than 15% and we have to pay for a second appraisal. Our loan officer never mentioned this and neither did our real estate agent. We really want the house so we paid for it. Just wanted to let others know.

]]> By: J Scott http://www.123flip.com/education/fha-90-day-rule/comment-page-1#comment-6747 J Scott Thu, 29 Sep 2011 04:00:05 +0000 http://www.123flip.com/?page_id=640#comment-6747 Hi J, If you take a look at the top of this article, you'll see a link to my post about this rule being waived -- back in February of 2010. It was waived again in January of 2011. So yes, you can now flip houses in less than 90 days to FHA buyers... Hi J,

If you take a look at the top of this article, you’ll see a link to my post about this rule being waived — back in February of 2010. It was waived again in January of 2011. So yes, you can now flip houses in less than 90 days to FHA buyers…

]]> By: J Hubble http://www.123flip.com/education/fha-90-day-rule/comment-page-1#comment-6733 J Hubble Wed, 28 Sep 2011 14:09:42 +0000 http://www.123flip.com/?page_id=640#comment-6733 Hi J Scott Im a Realtor in PA, I Just read an article that seems to imply that the 90 Day Flipping restriction for HUD properties has been waived for the 2011 yr. The link is below....Tell me if you understand it as i do. http://fha.realestatezing.com/anti-flipping.html Hi J Scott
Im a Realtor in PA, I Just read an article that seems to imply that the 90 Day Flipping restriction for HUD properties has been waived for the 2011 yr. The link is below….Tell me if you understand it as i do.

http://fha.realestatezing.com/anti-flipping.html

]]> By: J Scott http://www.123flip.com/education/fha-90-day-rule/comment-page-1#comment-5683 J Scott Tue, 24 May 2011 01:16:37 +0000 http://www.123flip.com/?page_id=640#comment-5683 Lindsay - Most conventional lenders don't have any "seasoning" period these days, so you shouldn't have any problems getting a conventional loan (as opposed to an FHA loan) on the property. That said, I would talk to your mortgage broker and ask him/her directly, as every lender is going to have their own special rules... Lindsay -

Most conventional lenders don’t have any “seasoning” period these days, so you shouldn’t have any problems getting a conventional loan (as opposed to an FHA loan) on the property. That said, I would talk to your mortgage broker and ask him/her directly, as every lender is going to have their own special rules…

]]> By: Lindsay Littlejohn http://www.123flip.com/education/fha-90-day-rule/comment-page-1#comment-5676 Lindsay Littlejohn Mon, 23 May 2011 22:40:56 +0000 http://www.123flip.com/?page_id=640#comment-5676 Me and my husband recently found a home we'd like to purchase. Upon doing some research to come up with a bid we found the house was just purcharsed by the seller on April 13. Can I get conventional fininancing this soon after the seller purchased the property? Me and my husband recently found a home we’d like to purchase. Upon doing some research to come up with a bid we found the house was just purcharsed by the seller on April 13. Can I get conventional fininancing this soon after the seller purchased the property?

]]> By: louise http://www.123flip.com/education/fha-90-day-rule/comment-page-1#comment-5643 louise Wed, 18 May 2011 13:33:59 +0000 http://www.123flip.com/?page_id=640#comment-5643 where on the web can I find all rules to qualify a home for FHA, Fanny Mae ect... for sellers? where on the web can I find all rules to qualify a home for FHA, Fanny Mae ect… for sellers?

]]> By: Eileen http://www.123flip.com/education/fha-90-day-rule/comment-page-1#comment-5564 Eileen Sun, 01 May 2011 18:44:52 +0000 http://www.123flip.com/?page_id=640#comment-5564 It was a great suggestion, but the seller won't help so I have to pay all of the costs, plus fee for a new appraisal. Thanks for the advice though It was a great suggestion, but the seller won’t help so I have to pay all of the costs, plus fee for a new appraisal. Thanks for the advice though

]]> By: Eileen http://www.123flip.com/education/fha-90-day-rule/comment-page-1#comment-5529 Eileen Mon, 25 Apr 2011 00:58:46 +0000 http://www.123flip.com/?page_id=640#comment-5529 Thanks very much for the advice, I'm going to ask him to pay half. I'll let you know how it goes. :) Thanks very much for the advice, I’m going to ask him to pay half. I’ll let you know how it goes. :)

]]> By: J Scott http://www.123flip.com/education/fha-90-day-rule/comment-page-1#comment-5521 J Scott Sun, 24 Apr 2011 20:34:37 +0000 http://www.123flip.com/?page_id=640#comment-5521 Hi Eileen - First, I'm not an attorney, so there's no guarantee my advice is what a legal professional would tell you... That said, unfortunately I don't think you have any recourse. The seller doesn't have any legal obligation to ensure that you or your lender is informed about the short period of time he's held the property. Though, if he does this for a living (buying, rehabbing and selling), he should be aware of the fact that not every lender can get this done, and also verify that your lender can get it done. It's in his best interest as well as yours, as obviously he wants to sell the house as badly as you want to buy it. If anything, this is the fault of your mortgage broker, who should have requested information from the seller early on in the process; once the broker found out that the seller owned the property for less than 90 days, he could have asked the underwriter if there would be any issues. Unfortunately, because the broker didn't ask the question, I assume the situation didn't get revealed until the underwriter started looking at the packet of data, which was late in the process. So, in this case, while the seller was remiss in leaving this information out, it was the mortgage broker who made the big mistake, as he certainly should have known the FHA regulations and should have verified that the sale met the regulations. As for next steps, I would try to reach a compromise with the seller, perhaps where you split the $2000 loss in half and each come up with an extra $1000. If he's not willing to do this, then it's up to you to determine how badly you want the house, and whether it is worth the extra cost. While I don't believe you have any legal recourse against the seller because he's an agent, it's worth mentioning to him that as an agent, he has a reputation to uphold, and by forcing to you eat this cost due to his omission of information, he's putting his reputation at risk. If he's smart, he'll realize that the negative ramification of potentially having you post this story all over the internet (with him and his brokerage mentioned) isn't worth just coming up with an additional $1000-2000 to help you out. Just my opinion... Hi Eileen -

First, I’m not an attorney, so there’s no guarantee my advice is what a legal professional would tell you…

That said, unfortunately I don’t think you have any recourse. The seller doesn’t have any legal obligation to ensure that you or your lender is informed about the short period of time he’s held the property. Though, if he does this for a living (buying, rehabbing and selling), he should be aware of the fact that not every lender can get this done, and also verify that your lender can get it done. It’s in his best interest as well as yours, as obviously he wants to sell the house as badly as you want to buy it.

If anything, this is the fault of your mortgage broker, who should have requested information from the seller early on in the process; once the broker found out that the seller owned the property for less than 90 days, he could have asked the underwriter if there would be any issues. Unfortunately, because the broker didn’t ask the question, I assume the situation didn’t get revealed until the underwriter started looking at the packet of data, which was late in the process.

So, in this case, while the seller was remiss in leaving this information out, it was the mortgage broker who made the big mistake, as he certainly should have known the FHA regulations and should have verified that the sale met the regulations.

As for next steps, I would try to reach a compromise with the seller, perhaps where you split the $2000 loss in half and each come up with an extra $1000. If he’s not willing to do this, then it’s up to you to determine how badly you want the house, and whether it is worth the extra cost. While I don’t believe you have any legal recourse against the seller because he’s an agent, it’s worth mentioning to him that as an agent, he has a reputation to uphold, and by forcing to you eat this cost due to his omission of information, he’s putting his reputation at risk.

If he’s smart, he’ll realize that the negative ramification of potentially having you post this story all over the internet (with him and his brokerage mentioned) isn’t worth just coming up with an additional $1000-2000 to help you out.

Just my opinion…

]]> By: Eileen http://www.123flip.com/education/fha-90-day-rule/comment-page-1#comment-5520 Eileen Sun, 24 Apr 2011 20:08:13 +0000 http://www.123flip.com/?page_id=640#comment-5520 I'm buying a house that was flipped, and got my loan approved with no points/fees, and rate locked at 4.875. Last week when seller (finally) provided the title, the lender rejected loan due to lack of seasoning. So I had to find a new lender, and now have to pay $2,000 to get the interest rate because seller didn't know about seasoning requirement. The seller refuses to pay the $2000, but I still want the house. The seller is also a real estate agent. Do I have any recourse to require him to pay the extra cost due to his error (e.g., legally or by reporting him to his broker)? Thanks for any infomation/advice. I’m buying a house that was flipped, and got my loan approved with no points/fees, and rate locked at 4.875. Last week when seller (finally) provided the title, the lender rejected loan due to lack of seasoning. So I had to find a new lender, and now have to pay $2,000 to get the interest rate because seller didn’t know about seasoning requirement. The seller refuses to pay the $2000, but I still want the house. The seller is also a real estate agent. Do I have any recourse to require him to pay the extra cost due to his error (e.g., legally or by reporting him to his broker)? Thanks for any infomation/advice.

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