FHA & Flipping

[Bob Stainbrook]

I had come across this article and just wanted to make sure everyone was aware if you hadn't seen it.

http://realtytimes.com/rtnews/rtcpages/200...7_flipping2.htm

 

[Mountain Man]

Okay, rather than trying to understand the difference between an illegal flip, and a true re-hab job, they decide to ax all of them.

The new policy was applauded by both lenders and community activists.

This is a change, the kettle is calling the pot black??

 

[Sean Wagle]

Won't hurt re-habbers much. It usually takes more than 90 days to repair and market a house. Retail sales use financing and need appraisals anyway.

 

[Ron in AR]

Thanks for the link to this article.

I do a lot of FHA foreclosure appraisals and a lot of these properties I have appraised as REOs have sold to investors that made cosmetic repairs and sold for a substantial profit.

Though I realize that there is a huge difference in market value between a run-down property in foreclosure and a cosmetically fresh property with a RE Agent working for the seller, I am staying away from the appraisal assignment when the investor resells the property.

I don't even want the appearance of a flip scam and I've turned down at least $1000 in orders on these deals in the past month. I figure better safe than sorry.