Is it simple or fairly difficult to flip/assign HUD homes? Does anyone know what steps to take or have experience doing it? Thanks to all for your attention.
Its my understanding that the HUD purchase forms prohibit their assignment. Its been a year or so since I've seen them but that was my recollection.
In terms of flipping, if you mean "flipping the contract" (a/k/a assigning it) then my answer is as stated above. If you mean flipping the property, meaning, buying it, closing on it, rehabbing it (if necessary) and turning around and sellling, you should be fine. One caveat though is that if you purchased the house with FHA financing, your buyer will be ineligible for an FHA loan if you held onto the property ("it was seasoned" for less than 90 days. You would not have this problem if your buyer uses conventional financing (although each lender may have its own seasoning requirements). A good mortgage broker or bank representative can help get your subsequent buyer qualified.
That's an excellent question. I was curious about this as well. I'm going to talk to a realtor associate of mine who specializes in HUD properties and this is one of the questions I am going to ask.
I write back tommorow and let you know what she says.
By the way, what state are you doing business in?
It is my experience as well that HUD will not let you assign the contracts on a HUD home. You may also have a problem if you purchase the property as an "Owner Occupant" and then sell it right after you close. Purchase the home as an investor up front, it'll be easier. You may not find as many that you can buy, but thems the rules.
Good Luck,
Jeff
I have found out that since the "Bush" Bill was signed into law May 2003 in refer. to refinancing and so on. You are going to have problems with how many times a proerty has been titled, transferred, and your investors being able to benefit even if you can assign the property (meaning even it is not a HUD home).
That is may problem here in Atlanta, GA. I am looking for creative ways to Assign property to my investors & collect my fee for doing all the reseach on the properties. Fannie Mae & Freddie Mac will not allow ANY flips or assignments. Plus the Banks, Refi companies, and Closing attorneys are not wanting to double closings at all.
This is all because of the transfer of title being recorded in that 90 period "seasoning period" from this law Bush put into place.
So if anyone has information on how to continue in this line of work I would really like to know myself. As a middle man, bird dogger, or Acquisitions person.
Its my understanding that the HUD purchase forms prohibit their assignment. Its been a year or so since I've seen them but that was my recollection.
for less than 90 days. You would not have this problem if your buyer uses conventional financing (although each lender may have its own seasoning requirements). A good mortgage broker or bank representative can help get your subsequent buyer qualified.
In terms of flipping, if you mean "flipping the contract" (a/k/a assigning it) then my answer is as stated above. If you mean flipping the property, meaning, buying it, closing on it, rehabbing it (if necessary) and turning around and sellling, you should be fine. One caveat though is that if you purchased the house with FHA financing, your buyer will be ineligible for an FHA loan if you held onto the property ("it was seasoned"
Hope this helps.
J
That's an excellent question. I was curious about this as well. I'm going to talk to a realtor associate of mine who specializes in HUD properties and this is one of the questions I am going to ask.
I write back tommorow and let you know what she says.
By the way, what state are you doing business in?
It is my experience as well that HUD will not let you assign the contracts on a HUD home. You may also have a problem if you purchase the property as an "Owner Occupant" and then sell it right after you close. Purchase the home as an investor up front, it'll be easier. You may not find as many that you can buy, but thems the rules.
Good Luck,
Jeff
I do business in Philadelphia also. Maybe we can share ideas.
It's my understanding also that you cannot flip HUD properties. However, I think you can do a double closing to get around this issue.
I have found out that since the "Bush" Bill was signed into law May 2003 in refer. to refinancing and so on. You are going to have problems with how many times a proerty has been titled, transferred, and your investors being able to benefit even if you can assign the property (meaning even it is not a HUD home).
That is may problem here in Atlanta, GA. I am looking for creative ways to Assign property to my investors & collect my fee for doing all the reseach on the properties. Fannie Mae & Freddie Mac will not allow ANY flips or assignments. Plus the Banks, Refi companies, and Closing attorneys are not wanting to double closings at all.
This is all because of the transfer of title being recorded in that 90 period "seasoning period" from this law Bush put into place.
So if anyone has information on how to continue in this line of work I would really like to know myself. As a middle man, bird dogger, or Acquisitions person.
Thanks,
Grant