Update of Previous FHA Seasoning Rule

I jumped the gun. It looks like (and we shouldn't be surprised) we may not benefit so much from the waiving of the seasoning rule. It will probably be determined by the end lender whether to allow seasoning to be waived for the buyer.

So it's not a one size fits all. The change is for the benefit of the banks selling REO's but I could believe an arguement could and will be made to use if for pre-foreclosures. So don't take no for an answer. Keep pushing to see what they will do.

Many times if the end buyer is strong - good credit, high credit score, the end lender may just let it pass.

I say "if they say no, they just don't have enough information. If the appraisal comes back at your sale value, it should be easy. Give the lender more information. Get at least 3 no's before you give up!"

Deb McMillan
Short Sale Queen

PreForeclosures and TONS of Updates

Yep, I've been MIA a long time. I was preparing for my boot camp at the end of May.

I have to say it went really well. Lots of students, lots of information, three days of giving people the key to get themselves to financial freedom. All they have to do is read the manuals, listen to the CD's and learn even more on the weekly coaching calls. It was a great event. Those students WILL be closing deals and making lots of money in no time!

And we spent a lot of time talking about the seasoning rule. How, if at all, you can get around it, work with it, make it work for us.

Seasoning is the new owner being on the deed for longer than 90 days before it is sold to someone with a govenment back loan, such as FHA, Freddie Mac, etc. That knocks out the "flipping" of a property, selling it to quick after the rehab, etc.

And now, it's a mute point. The rule has been changed! For a year anyway, but some time is better than no time. The comment made by the head of the FHA was it "will allow home buypers to purchase foreclosure homes in much greater numbers and ease the excess supply of unsold homes in the neighborhoods across the country". They are getting it!

That's the good news. The negative comments came later. "It's not going to have as much an impact as one would assume, because most of the properties aren't going to meet FHA standands." But if investors buy the house, fix the house and resell the house - quickly (which is what we do because the longer we hold the house the more expensive it is due to holding costs - lender fees, no return on income, etc.) we will be able to do a second house and a third and fifth, etc. sooner because our cash or credit is not tied up.

So go out there and buy a preforeclosure house! Fix it and sell it or just resell it to an FHA buyer and get your money back and buy another! Now is the time.

And learn how to buy a preforeclosure house (short sale) at http://www.shortsalequeen.com/

The most up to date information on preforeclosure short sales anywhere is here. Get weekly coaching too! http://www.shortsalequeen.com/SA/CoachingSalesLetter.htm

Stayed tuned cause I have a lot more updates!