HUD Lifts 90-day Seasoning for One Year
As you probably know, HUD had a minimum hold time on a property of 90 days before it could be sold (to avoid “quick flips”).The minimum hold meant that FHA would not insure a property sold in a flip of a shorter hold time.
Needless to say this strange and arbitrary limitation did not help people trying to fix and flip houses, nor the local neighborhoods where such fix-and-flips would have created a positive effect.
HUD has now (as of January 15th, 2010) recapitulated - temporarily, and lifted the limit for the duration of one year. Hopefully it will stay like this.
Here is the link to the HUD website announcing the news.
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Guillermo Perez Vargas said:
The lift in the 90-day seasoning rule only applies if you buy the house directly out of foreclosure - the trustee sale in Arizona. If you buy it from a wholesaler or other entity (including REO, Beank, Short Sale) it does not. I have checked this with 4 lenders in the Phoenix area and all the underwriters said the same thing!
March 10th, 2010 at 12:14 pm
