Deed in lieu of foreclosure - same guidelines as foreclosure?

[gmccaughrin]

Is the 90-day FHA waiting period requirement (before resale date) waved for a foreclosed property? What if the parties agreed to a Deed in Lieu of Foreclosure so as to avoid legal costs? Can the property be resold before the 90 days are up?

 

[Lloyd Bonafide]

I don't know how a deed in lieu is affected, but for REOs, the 90 day waiting period has been temporarily suspended.

http://money.cnn.com/2008/06/13/real_estate/property_flipping.ap/index.htm?section=money_latest

The Bush administration is temporarily suspending a 5-year-old rule intended to deter property flippers, as part of an effort to help speed the sale of foreclosed properties.

For one year, the Federal Housing Administration will no longer impose a 90-day waiting period before foreclosed properties can be sold to receive government-backed loans.

 

[gmccaughrin]

90-day waiting period rule suspended - only for banks or for private indiv also?

I am a private individual who got stuck with a defaulted loan. I am unloading this (at a loss) - does the newly suspended rule for 90-day waiting period also apply to me, or does it apply only to banks who hold the title? We did a "deed in lieu of foreclosure."

 

[Terrel L. Shields]

Should be suspended for you if the borrower is going FHA.

 

[Mike Boyd]

Should be suspended for you if the borrower is going FHA.

I agree but prepare a letter explaining the situation to be submitted along with your loan package.