Buying a Home in Salt Lake City, UT

Good news may come soon for Buyers who qualified for the federal homebuyer tax credit and were Under Contract on a home BEFORE April 30, 2010 AND whose closings may not be looking like they will happen before the original tax credit closing deadline of June 30, 2010.

Today, the Senate approved an extension of the closing deadline to September 30, 2010. It sounds like the House will also have to pass the amendment before it becomes law.

Stay tuned!

In the meantime, if you are one of the nervous Buyers, you probably want your agent to keep working on getting your transaction done before the existing deadline if possible.

If you have excellent credit and will be buying a $300,000-$800,000 home within 90 days and would like an agent who will work exclusively for you, make sure you get an Agent on YOUR side of the transaction! Make sure you hire an E B A!

Call us at (801) 969-8989 or contact us via the link on this page.

©2010 Homebuyer Representation, Inc. - "The Real Estate Agents on the Buyer's Side" ^TM - Salt Lake City, UT

Exclusive Buyers Agents (EBA) - All Rights Reserved

Finally...

Exclusive Buyer's Agents do not list homes for sale and never represent Sellers. They have no "inventory" to try and push on you. They can represent you in purchasing any home. They are specialists at representing Buyers ONLY on the Buyer's side of the transaction. Exclusive Buyer's Agents work to get BUYERS the Best Price and Terms when they Buy a home...

Effective February 1, 2010, HUD waived the requirement that an FHA Loan could not be issued on a home where the current owner was on title for less than 90 days before a contract to purchase was entered into.

Well, the fact that it was not included in a Mortgagee Letter is causing some problems.

I called HUD today to make them aware of the absence. I have no idea if or when they will actually put it into a Mortgagee Letter or not, but I thought it wouldn't hurt to ask them to.

HUD and FHA were both on board with waiving the rule back on January 15, 2010. It was supposed to take effect on February 1, 2010. OK... it DID take effect then, but it hasn't been implemented by some lenders because the policy isn't easily found, nor was it included in an official Mortgagee Letter (how many lenders stay current on policy changes).

The waiver is supposed to be in effect for one full year unless otherwise extended or withdrawn by the FHA Commissioner. The Special Assistant to the Secretary of HUD that I spoke to today confirmed that the waiver is still in effect. (June 9 2010)

Some stated goals in instituting the waiver are:

• To stabilize home values
• To revitalize neighborhoods and communities
  
• To expand access to FHA Mortgage Insurance
• To allow for the quick resale of foreclosed properties
  
• To combat the effects of vacant and abandoned homes
• To give FHA borrowers accdess to a broader array of recently foreclosed properties

There are a few requirements that go along with the waiver. Some are:

• Transaction must be arms-length
• Sales price of the property cannot be 20% or more than what the Seller acquired it for. (Well, it CAN, but if so, additional requirements must be met)
• Limited to forward mortgages, (not Home Equity Conversion Mortgages)

Borrowers are not limited to foreclosed properties. They can buy bank-owned, HUD-owned, or privately owned homes (Includes both personally owned and entity-owned).

For more details (and the ever-elusive documentation), see HUD's January 15, 2010 release.

The HUD Press Release about the Waiver

The actual waiver itself

It sounds like the lender we're working with is satisfied with the documentation we provided and the transaction would go smoothly.

Has anybody been able to help a buyer purchase a home with an FHA loan where the seller has been on title for less than 90 days, since February 1, 2010? How did it go? Any problems with Lenders or Underwriters?

Thanks for your comments!

If you have excellent credit and will be buying a $300,000-$800,000 home within 90 days and would like an agent who will work exclusively for you, make sure you get an Agent on YOUR side of the transaction! Make sure you hire an E B A!

Call us at (801) 969-8989 or contact us via the link on this page.

©2010 Homebuyer Representation, Inc. - "The Real Estate Agents on the Buyer's Side" ^TM - Salt Lake City, UT

Exclusive Buyers Agents (EBA) - All Rights Reserved

Finally...

Exclusive Buyer's Agents do not list homes for sale and never represent Sellers. They have no "inventory" to try and push on you. They can represent you in purchasing any home. They are specialists at representing Buyers ONLY on the Buyer's side of the transaction. Exclusive Buyer's Agents work to get BUYERS the Best Price and Terms when they Buy a home...