FHA Waives Anti-Flipping Rules to Help Increase Sales of Foreclosures

From: Atlanta Foreclosures List
Published: Fri Feb 05 2010


For years, the FHA has had a restriction: It wouldn''t insure a mortgage on a house if the seller had owned it for less than 90 days. �"By removing the 90-day rule, private investors can quickly renovate and re-list the home and buyers will have access to FHA financing, which offers 3.5% down payments instead of the normal 10% required by most lenders”, said Chris Lowe of Atlanta Foreclosures List located at http://atlantaforeclosureslist.weebly.com

The restriction was an effort to prevent quick flips of houses that inflated their values way beyond market value but with foreclosures at record levels -- over 2.5 million foreclosures were filed last year -- many neighborhoods have an excess of foreclosure properties sitting around unsold and hopefully this new policy will help get some of the homes off the market.

�"With the FHA''s new policy, now may be a good time for individuals to get involved with foreclosures”, said Chris Lowe. �"Many first time buyers are afraid of purchasing a foreclosure because they are afraid of hidden costs and other risks. You can avoid many of these fears by using a competent Realtor. At our site http://atlantaforeclosureslist.weebly.com, we can help you find a competent Realtor to work with.”

The FHA does have two important stipulations that are intended to govern the revised plan:

1. There can be no conflict of interest among buyers, sellers, agents or others involved in the deal.

2. Price increases from the time of the investor''s acquirement to what is paid by the buyer seeking FHA financing will usually be limited to 20 percent.

If the price increase exceeds 20 percent, extensive documentation of the renovation expenses made by the investors will be required to justify such a price increase. An independent property inspection will also be required to help the buyer understand the condition of the property and the improvements made.

About Atlanta Foreclosures List:

Atlanta Foreclosures List offers help locating foreclosures in the Atlanta Georgia area. Atlanta foreclosures can be searched for online at no cost and updated foreclosure information can be sent directly to individuals email address.

Atlanta Foreclosures List
346 Auburn Ave. NE #403
Atlanta, GA. 30312
(404) 537-2426
http://atlantaforeclosureslist.weebly.com
Company: Atlanta Foreclosures List
Contact Name: Chris Lowe
Contact Email: atlantaforeclosureslist@gmail.com

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