FHA finalizes 'anti-flipping fraud'

Beginning July 7, only the homeowners listed on recorded documents can sell properties slated for Federal Housing Administration-backed financing, according to new FHA rules intended to discourage property flipping. Additionally, FHA financing will not be available for homes sold within 90 days of purchase. Sellers will have to provide additional valuation data to unload properties between 91 and 180 days after the last transaction, in cases where the new sales price is 100 percent or more higher than the previous sales price.

HUD, Fannie Mae, Freddie Mac, lenders unloading their real estate owned (REO) portfolios, local or state housing agencies, nonprofits with HUD permission to purchase discounted REO properties, inherited properties, and dwellings located in presidentially declared disaster areas are exempt from the anti-flipping rules.

Posted by Donald Urschalitz P.A. at July 3, 2006 06:02 PM