Attention Phoenix and Scottsdale Investors

Short sale homes and REO investment property flipping 
is becoming more and more accepted by the government and major
lending institutions.  This is evidenced, among other things,
by Freddie Mac’s recent bulletins, updated credit policies by
major lenders allowing for C buyer financing (FHA buyers), and revised title bulletins
stating that the C purchase price does not need to be revealed
to the A lender as long as certain disclosures are made. 

Last Friday the FHA rescinded its 90 anti-flipping rule and will,
for a period of 1 year, allow FHA buyers to obtain loans
on investor owned properties that have been recently purchased by Phoenix investors
who intend to flip them for a profit.

This “green light” by FHA means that if you’ve been on the
sidelines of investment property flipping, you need to educate yourself
as soon as possible, because Real Estate investors will be coming on
strong in 2010 given this latest anti-flipping news. The Valley real etate market still has many potential Phoenix Investment Properties below current market price. The year 2010 will be marked as the year of the Savy R E Investor.

The waiver will take effect on February 1, 2010 and is effective for one year, unless otherwise extended or withdrawn by the FHA Commissioner.  To protect FHA borrowers against predatory practices of “flipping” where properties are quickly resold at inflated prices to unsuspecting borrowers, this waiver is limited to those sales meeting the following general conditions:

• All transactions must be arms-length, with no identity of interest between the buyer and seller or other parties participating in the sales transaction of the phoenix investment property
• In cases in which the sales price of the investment property is 20 percent or more above the seller’s acquisition cost, the waiver will only apply if the specific conditions are met, which include the requirement of a 2nd appraisal and property inspection.