HUD Extends Foreclosure Anti-Flipping Rule
HUD Extends Foreclosure Anti-Flipping Rule
HUD Extends Foreclosure Anti-Flipping Rule
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January 24, 2011 (Shirley Allen)
mortgage-flipping-image
The Department of Housing and Urban Development (HUD) announced that it is in the process of approving another one-year suspension of its anti-flipping rule on foreclosed properties bought with FHA loans. The suspension was first initiated on February 1st of last year to allow investors to quickly renovate foreclosed homes and selling them to first time buyers as a means to further sales of foreclosed properties.

In 2003, HUD issued a rule that prohibits the FHA from insuring a mortgage on a home that was owned by the seller for less than 90 days. HUD initiated the anti-flipping rule early last decade because the Federal Housing Authority (FHA) discovered that too many of these quick sales were made at grossly inflated prices and involved fraudulent activities.

“HUD believes that short re-sales executed within 90 days imply pre-arranged transactions that often prove to be among the most egregious examples of predatory lending practices,” the final rule said.

In suspending the anti-flipping rule last February, HUD required that all sales must be “arms length” transactions, meaning there cannot be a shared interest between the buyer and the seller. And the lender has to meet specific conditions if the price of the property is 20% or more above the seller’s acquisition cost.

“FHA borrowers, because of the restrictions, have often been shut out from buying affordable properties,” HUD Secretary Shaun Donovan said last January.

As foreclosure inventory started piling up in 2009, investors claimed the 90-day restriction prevented them from quickly renovating foreclosed homes and selling them to first-time homebuyers. Donovan agreed and initiated the suspension.

The HUD spokesman said the rule was currently in the clearance process. When the FHA first lifted the ban, HUD announced $2 billion in Neighborhood Stabilization Program grants to local communities and nonprofits looking to clear out vacant and abandoned homes.

Tags: HUD, FHA, FHA loans, foreclosed properties, mortgage, fraud, anti-flipping rule, predatory lending practices, borrowers

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Estimate your monthly mortgage payment
Auto Loan
Calculator

Determine how much car you can afford before buying
Learn About
Mortgage Loans

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15 Year vs 30 Year
Loan Comparison

Compare 15 year and 30 year mortgage loans
Todays Mortgage
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January 24, 2011 (Shirley Allen)
mortgage-flipping-image
The Department of Housing and Urban Development (HUD) announced that it is in the process of approving another one-year suspension of its anti-flipping rule on foreclosed properties bought with FHA loans. The suspension was first initiated on February 1st of last year to allow investors to quickly renovate foreclosed homes and selling them to first time buyers as a means to further sales of foreclosed properties.

In 2003, HUD issued a rule that prohibits the FHA from insuring a mortgage on a home that was owned by the seller for less than 90 days. HUD initiated the anti-flipping rule early last decade because the Federal Housing Authority (FHA) discovered that too many of these quick sales were made at grossly inflated prices and involved fraudulent activities.

“HUD believes that short re-sales executed within 90 days imply pre-arranged transactions that often prove to be among the most egregious examples of predatory lending practices,” the final rule said.

In suspending the anti-flipping rule last February, HUD required that all sales must be “arms length” transactions, meaning there cannot be a shared interest between the buyer and the seller. And the lender has to meet specific conditions if the price of the property is 20% or more above the seller’s acquisition cost.

“FHA borrowers, because of the restrictions, have often been shut out from buying affordable properties,” HUD Secretary Shaun Donovan said last January.

As foreclosure inventory started piling up in 2009, investors claimed the 90-day restriction prevented them from quickly renovating foreclosed homes and selling them to first-time homebuyers. Donovan agreed and initiated the suspension.

The HUD spokesman said the rule was currently in the clearance process. When the FHA first lifted the ban, HUD announced $2 billion in Neighborhood Stabilization Program grants to local communities and nonprofits looking to clear out vacant and abandoned homes.

Tags: HUD, FHA, FHA loans, foreclosed properties, mortgage, fraud, anti-flipping rule, predatory lending practices, borrowers

FILL OUT THE FORM
It all starts here. Select the loan product you want to apply for and complete the subsequent questionnaire.
WE VERIFY & TRANSMIT TO LENDERS
Once we receive your completed questionnaire we verify a couple vital pieces of information and direct your information to our network of lenders, all within minutes.
REVIEW YOUR OFFERS
With offers in hand you can now compare rates and costs and get the best possible deal. Comparison shopping made easy. You fill out one form and lenders compete for your business.
CHOOSE YOUR LENDER
Congratulations! With the great learning tools we provide for you at LoanRateNetwork and the offers you have received, you've found the right product and the best rate.
HOW LOANRATENETWORK
LOAN CENTER WORKS
ADVANTAGES OF USING
LOANRATENETWORK
FAST & EASY. DATA ENCRYPTED
Applying to multiple lenders is fast and easy with our one simple questionnaire. Choose the product you’re looking for, take a few moments to answer a few questions and you’re on your way to saving.
NO OBLIGATION. NO HIDDEN FEES
Any of the services on our website are 100% free, there is no obligation to use our services or any hidden fees. We’re not loan brokers so we don’t charge broker fees like other websites.
NO SSN OR CREDIT CHECK
No SSN or credit check is necessary to use our services. We bring lenders to you so they can compete for your business and you save. That information only becomes necessary after you choose a lender.
Helpful Tools

January 24, 2011 (Shirley Allen)
mortgage-flipping-image
The Department of Housing and Urban Development (HUD) announced that it is in the process of approving another one-year suspension of its anti-flipping rule on foreclosed properties bought with FHA loans. The suspension was first initiated on February 1st of last year to allow investors to quickly renovate foreclosed homes and selling them to first time buyers as a means to further sales of foreclosed properties.

In 2003, HUD issued a rule that prohibits the FHA from insuring a mortgage on a home that was owned by the seller for less than 90 days. HUD initiated the anti-flipping rule early last decade because the Federal Housing Authority (FHA) discovered that too many of these quick sales were made at grossly inflated prices and involved fraudulent activities.

“HUD believes that short re-sales executed within 90 days imply pre-arranged transactions that often prove to be among the most egregious examples of predatory lending practices,” the final rule said.

In suspending the anti-flipping rule last February, HUD required that all sales must be “arms length” transactions, meaning there cannot be a shared interest between the buyer and the seller. And the lender has to meet specific conditions if the price of the property is 20% or more above the seller’s acquisition cost.

“FHA borrowers, because of the restrictions, have often been shut out from buying affordable properties,” HUD Secretary Shaun Donovan said last January.

As foreclosure inventory started piling up in 2009, investors claimed the 90-day restriction prevented them from quickly renovating foreclosed homes and selling them to first-time homebuyers. Donovan agreed and initiated the suspension.

The HUD spokesman said the rule was currently in the clearance process. When the FHA first lifted the ban, HUD announced $2 billion in Neighborhood Stabilization Program grants to local communities and nonprofits looking to clear out vacant and abandoned homes.

Tags: HUD, FHA, FHA loans, foreclosed properties, mortgage, fraud, anti-flipping rule, predatory lending practices, borrowers

HOW LOANRATENETWORK
LOAN CENTER WORKS
FILL OUT THE FORM
It all starts here. Select the loan product you want to apply for and complete the subsequent questionnaire.
WE VERIFY & TRANSMIT TO LENDERS
Once we receive your completed questionnaire we verify a couple vital pieces of information and direct your information to our network of lenders, all within minutes.
REVIEW YOUR OFFERS
With offers in hand you can now compare rates and costs and get the best possible deal. Comparison shopping made easy. You fill out one form and lenders compete for your business.
CHOOSE YOUR LENDER
Congratulations! With the great learning tools we provide for you at LoanRateNetwork and the offers you have received, you've found the right product and the best rate.
ADVANTAGES OF USING
LOANRATENETWORK
FAST & EASY. DATA ENCRYPTED
Applying to multiple lenders is fast and easy with our one simple questionnaire. Choose the product you’re looking for, take a few moments to answer a few questions and you’re on your way to saving.
NO OBLIGATION. NO HIDDEN FEES
Any of the services on our website are 100% free, there is no obligation to use our services or any hidden fees. We’re not loan brokers so we don’t charge broker fees like other websites.
NO SSN OR CREDIT
CHECK
No SSN or credit check is necessary to use our services. We bring lenders to you so they can compete for your business and you save. That information only becomes necessary after you choose a lender.