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June 20, 2008
FHA Lessons 90-Day Rule to Help Lenders Sell REOs
Lenders will no longer find themselves struggling with the Federal Housing Administration's (FHA) 90-day rule, which prevents sellers who have owned a property for less than 90-days from offloading a home to a buyer who intends to be insured by the FHA.
While the FHA implemented this rule to prevent the practice of flipping in the otherwise safe FHA-insured atmosphere, lenders who are trying desperately to remove distressed properties from their books have been unable to seize the day with qualified borrowers because of the three-month waiting period.
Posted by S. Germain at June 20, 2008 08:13 AM