The department of Housing and Urban Development (HUD) has recently announced that they will temporarily changing their policy when it comes to the sale of foreclosed properties.
Many people, public and real estate agents alike, don’t know this but you could not purchase a home with a FHA loan if the property had changed hands in the 90 days prior to your contract date. This has created havoc for people trying to buy foreclosed homes with a FHA secured loan because sometimes the banks take possession and list the property in a matter of weeks. When this does come up, usually way too far into the transaction, it causes buyers to either scramble to find another loan program or cancel the contract and start the home search over.
Well, HUD has now done away with this 90 day rule; at least for the next year. What this means is one less obstacle when trying to purchase a foreclosed home in Indianapolis. This is not necessarily earth shattering news, but with the new Indianapolis FHA loan limits, many more buyers are choosing FHA loans than ever before and this is just one more piece of the puzzle to aid the housing recovery.
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Date: 2008-06-20 16:27:11Views: 350
Comments
Mike Taylor
Yes, every little bit help. I know several clients that would have benefited if this rule was in effect.
Ki
This is finally a good bit of news with loans. Espically with the closing of IndyMac its not to see some loan rules easing.
Sam Chapman
With the huge number of foreclosed properties in some markets, anything to speed up sales is a good thing.