Housing and Urban Development (HUD) recently announced that they are going to lift the 90-day moritorium on turning over a recently purchased HUD property.
This goes into effect in a few days, on February 1, and got a lot of hype when announced.
However the excitement has died down and it really should have. The concept of what HUD is doing is good, but like a lot of the governmental programs that are being offered … it doesn’t do too much.
An investor interested in HUD homes are required to wait 10-days while owner-occupant buyers are given the chance to bid and win on the home. The majority of the “good” deals are gobbled up in this stage, and that’s cool.
HUD recently eliminated its 90-day anti-flipping initiative, but will it make a difference? (photo used with permission)
By “good” I’m referring to those homes that just need a tiny-bit of elbow greese and are priced a bit below market. So the good pickings for investors usually come from houses that are in need of more work.
If it takes 30 days on the market and 30 days to close once in contract, that only leaves 30 days for working to get the property ready and flipped to take advantage of HUD new policy. So, we are really not going to see a lot of these come to fruition.
