Bank Foreclosed 3 Days Before Close of Escrow

[Lacerta]

My understanding from multiple lenders now is that the 90 day flip rule is completely gone. However, many underwriters are still using it, which is their right to do so if they choose. But we have had 2 FHAs that went through prior to 90 days seasoning, and multiple other loans. (We work with several people who buy foreclosures, fix and flip, so deal with this a lot). Many lenders are allowing it now, they just require 2 appraisals be done.

[Silverfall]

Originally Posted by Lacerta

My understanding from multiple lenders now is that the 90 day flip rule is completely gone. However, many underwriters are still using it, which is their right to do so if they choose. But we have had 2 FHAs that went through prior to 90 days seasoning, and multiple other loans. (We work with several people who buy foreclosures, fix and flip, so deal with this a lot). Many lenders are allowing it now, they just require 2 appraisals be done.

FHA allows it, but most out here do the lender overlay essentially nullifying FHA's policy. Sounds like the lender is one of those.