The sun is shining down on those REO homes!
Effective February 1, 2010 HUD will allow for homes that have been listed for sale, have been openly and fairly marketed via MLS, auction , For Sale by Owner offering, or developer marketing to qualify for FHA insurance with the intent of "flipping" the home!
The main idea and thrust behind this is to reduce the number of REO properties that have flooded the marketplace. This program will expire a year from the date that it was enacted. In order for a property to qualify for this special waiver one of the several HUD rules that must be met is for the lender to have the property inspected by a licensed and or qualified home inspector. The lender may pass the cost of this inspection on to the buyer and must provide a copy of the report to the buyer prior to closing.
I can see this new program really opening the market up and helping to reduce the number of REO homes that we are all having to deal with. Apparently not many Realtors or mortgage lenders are aware of this new program.
This is the link to the HUD document: http://www.hud.gov/offices/hsg/sfh/waivpropflip2010.pdf
Scott Patterson, approved HUD inspector.
Trace Inspections, serving a 100 mile radius of Nashville TN 615-302-1113
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