Noob Question. If Flipping HUb Homes Illegal?

Comments(6)

• 
  myfrogger13th March, 2004

  No, flipping homes is not illegal. You are not doing anything criminal and will not get arrested.
  
  This article basically says that HUD will not insure a mortage 90 days and other paperwork must be done 91-180 days.
  
  There are a lot of lenders that have a seasoning requirement similar to hud.
  
  If you provide before, during, and after pictures, description, and cost of as much repair as possible, the bank will likely not worry about seasoning. You can show them that a true effort was made and that your repairs actually did increase the value of the home.
  
  I'm sure others can fill you more but this is my 2 minute answer. I appologize if this is not as complete as it should be.
  
  GOOD LUCK

• 
  JohnCl13th March, 2004

  So, how long do you have to hold title on a house for it to be seasoned?
  
  JohnCl

• 
  tinman175513th March, 2004

  1) getting arrested
  
  You will not get arrested but if you signed a contract with HUD stating you were buying this as an owner occupied and didn't live there. You may find that they are cracking down on this. I have seen an investor being banned from buying HUD properties.
  
  
  2) Seasoned property
  A bank's guildelines may have a clause that reads house must be seasoned for X number of months, up to one year.
  
  Lori
  [addsig]

• 
  tosf13th March, 2004

  Please excuse my newbie question-seasoned meaning owner occupied for so many months before you sale it? Thank you

• 
  tinman175513th March, 2004

  Quote:
  On 2004-03-13 14:57, tosf wrote:
  Please excuse my newbie question-seasoned meaning owner occupied for so many months before you sale it? Thank you <IMG SRC="images/forum/smilies/icon_confused.gif">
  
  
  
  
  Not owner-occupied, just owned by the same person.
  
  Lori
  [addsig]

• 
  tosf13th March, 2004

  Thank you!