Purchasing FHA Foreclosures

FHA is making a temporary move which will make it easier for folks who want to purchase FHA foreclosures.  In a release last week HUD announced that it will temporarily waive a 90 day restriction it held on those selling HUD foreclosed property. 

The restriction had been in place to reduce ”flips” a fraudulent practice that strips a home of its equity before being quickly resold at an inflated price.  Under most circumstances, the resale is to an unsuspecting buyer, especially if that buyer is not represented by a licensed Realtor.

In their statement, HUD said:

“In an effort to stabilize declining home values in certain neighborhoods.. announced a temporary policy that will… allow for the immediate sale of vacant foreclosed properties.

For one year, the Federal Housing Administration (FHA) will insure foreclosed properties marketed and sold by property disposition firms on behalf of lenders. The properties, which must purchased by owner-occupants, will no longer be subject to the customary 90-day waiting period.”

Hud further stated, “that many foreclosed properties remain vacant for months, inviting vandalism and reducing values of surrounding homes. To address that sizeable inventory, lenders have hired companies that specialize in the marketing and disposition of foreclosed homes. It’s reasonable and appropriate that these firms have the ability to sell the properties to borrowers using FHA financing.”

We normally recommend FHA 203k financinging for these properties!  For more information – please follow this link.  If you have questions about qualifying for one of these properties, please contact Steve and Eleanor Thorne  at First Financial Services in Raleigh, NC 919-851-3031