FHA 90 Day Seasoning in Wholesaling Pre Foreclosures
FHA 90 Seasoning and Pre Foreclosure
Yes, about 2 months ago President Bush and Federal Housing Commissioner Brian Montgomery of the FHA passed a law to waive the 90-day seasoning rule for 1 year we thought would help closing house purchases in pre foreclosure wholesale short sales faster.
Seasoning and Investor Pre Foreclosure Wholesale Short Sale Purchases
If it included pre foreclosure wholesale short sales, I sure haven’t seen it yet. The government, surprise, surprise is working for the banks. They want the banks to be able to close their REO properties quickly (like they do anything quick) and be able to get their negative asset houses off of their books and save neighborhoods.
The government or banks or legislators still don’t believe the investors who do create win-win deals for the banks and sellers, make money for themselves, save neighborhoods, slow the amount of vacant boarded up buildings need a little help to close those deals. Last time I checked we were still a Capitalist country and making a profit was a good thing to do. And isn’t that why banks are closing their doors - because they aren’t making a profit? The new regulations they continue to mount against investors is staggering.
I thought for a few short moments that the new law would help us - the investor. Allow us to close deals without 90 seasoning. So I gave it a try. I was stopped in my tracks. It is still up to the end lender and FHA won’t close without the previous seller being on the Deed for a minimum of 90 days or more.
Creative Law Abiding Seasoning and Pre Foreclosure Wholesale Solutions
Investors have had to find creative ways to get around the legislation written in the past. We are continuing to do that now.
I have had one deal stopped from not having seasoning. Fortunately, I had contingencies in my offer that allowed me to get out of the deal if the 90 days still affected pre foreclosure wholesale short sale closing. And I’ve somewhat solved the problem in other ways too. OK, not solve but get around it and make it work…for now.
I immediately changed the way I accepted buyers. If I haven’t recorded a deed and I only have an Option to Purchase on the property, I don’t accept FHA loans to buy the house. If you are listing it in the MLS, you can make a note of it there too.
Yes, I’m missing out on some buyers. Because right now, FHA is just about the only lender accepting anybody with a low credit score. On the other hand, if they want the house bad enough and they can, they will get approved for Conventional or even VA financing.
Get the Deed in SeasoningToo
And the pre foreclosure houses that I’m short saling and wholesaling and we aren’t close to closing, we are getting the deed. We are recording it early (of course) and getting the option to purchase then moving forward.
We are in the process of closing these deals. The hiccups we’ve had so far we've been able to be overcome. I’ll keep you up to date of how we do get around any more and what you’ll need to do to get your pre foreclosure wholesale short sales closed smoothly and easily!
And now I invite you to learn other tips when working on your short sales by getting this free report www.shortsalequeen.com/free-special-short-sale-profits-report.htm
Yes, about 2 months ago President Bush and Federal Housing Commissioner Brian Montgomery of the FHA passed a law to waive the 90-day seasoning rule for 1 year we thought would help closing house purchases in pre foreclosure wholesale short sales faster.
Seasoning and Investor Pre Foreclosure Wholesale Short Sale Purchases
If it included pre foreclosure wholesale short sales, I sure haven’t seen it yet. The government, surprise, surprise is working for the banks. They want the banks to be able to close their REO properties quickly (like they do anything quick) and be able to get their negative asset houses off of their books and save neighborhoods.
The government or banks or legislators still don’t believe the investors who do create win-win deals for the banks and sellers, make money for themselves, save neighborhoods, slow the amount of vacant boarded up buildings need a little help to close those deals. Last time I checked we were still a Capitalist country and making a profit was a good thing to do. And isn’t that why banks are closing their doors - because they aren’t making a profit? The new regulations they continue to mount against investors is staggering.
I thought for a few short moments that the new law would help us - the investor. Allow us to close deals without 90 seasoning. So I gave it a try. I was stopped in my tracks. It is still up to the end lender and FHA won’t close without the previous seller being on the Deed for a minimum of 90 days or more.
Creative Law Abiding Seasoning and Pre Foreclosure Wholesale Solutions
Investors have had to find creative ways to get around the legislation written in the past. We are continuing to do that now.
I have had one deal stopped from not having seasoning. Fortunately, I had contingencies in my offer that allowed me to get out of the deal if the 90 days still affected pre foreclosure wholesale short sale closing. And I’ve somewhat solved the problem in other ways too. OK, not solve but get around it and make it work…for now.
I immediately changed the way I accepted buyers. If I haven’t recorded a deed and I only have an Option to Purchase on the property, I don’t accept FHA loans to buy the house. If you are listing it in the MLS, you can make a note of it there too.
Yes, I’m missing out on some buyers. Because right now, FHA is just about the only lender accepting anybody with a low credit score. On the other hand, if they want the house bad enough and they can, they will get approved for Conventional or even VA financing.
Get the Deed in SeasoningToo
And the pre foreclosure houses that I’m short saling and wholesaling and we aren’t close to closing, we are getting the deed. We are recording it early (of course) and getting the option to purchase then moving forward.
We are in the process of closing these deals. The hiccups we’ve had so far we've been able to be overcome. I’ll keep you up to date of how we do get around any more and what you’ll need to do to get your pre foreclosure wholesale short sales closed smoothly and easily!
And now I invite you to learn other tips when working on your short sales by getting this free report www.shortsalequeen.com/free-special-short-sale-profits-report.htm
posted by Deb at 3:26 PM
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