I have a question regarding Freddie Mac foreclosures, Fannie Mae foreclosures, all the FHA government home foreclosures. I have heard that once you purchase these you cannot fix and sell, you have to hold on to the properties for 2 years minimum. Can anyone advise me about buying these properties and the bidding of HUD homes. Need to know more information about these types of foreclosures.
buy them and lease option to a tenant/buyer.
Your lease should be set for the time frame allowed by fha.
You can create huge cash flow for the next two years.
Lets not forget they are the easiest shortsales you will ever do once you establish a relationship with the loss mitigation officer.
I don’t believe that you are required to hold them for two years. I think the catch is that they cannot be sold for a specific period of time if the buyer wants to use government financing. Basically if you buy it at auction the person you sell it to cannot use FHA or VA financing to buy it from you. For a specific period of time.
Christopher,
You are right but i thought he was saying that purchasing a fha home has some boundaries such as any home being bought on a fha foreclosure can not be resold for a period of 2 yrs which i have faced this directly from fha.
Thanks
I am in California. In my state spoke to HUD . No properties on list. Don not know about your state.
Its a buyers market, so just lease property for two years and when market becomes a sellers market just get rid of the thing.