Thursday, August 15, 2013
Wait 90 Days No More on Flip Purchases!
Why wait 90 days to purchase a home that was auctioned at a Trustee Sale because some lenders have a 90 day exclusion overlay on their purchase loans? There are now lenders in the marketplace that are offering conventional loans for purchases of foreclosed flip homes only after 30 days from the Trustee Sale date. The 90 day rule was adopted by HUD to slow the tide of homes that were traded shortly after foreclosure sales. The problem was evaluating the true value of the homes and the 90 day cooling off period helped in this respect. Now, the market is easier to define and a 30 day wait overlay is sufficient. We shall see other changes as we enter into a more normalized real estate market and the loans that go with that.