FHA 90 Day Flip Rule

[Jason Ligon]

After months and months of looking, putting in offers and things not working out for various reasons, my wife and I have finally made it to the end stages of buying a home. Definitely a marathon and not a sprint as we would have liked. We've got a home inspection done this week and I've sent the inspection contingencies back to my Realtor.

However, I literally just got an email from my mortgage broker stating that "I had an opportunity to speak with a representative of the parent company that manages Goshen REO [seller] and he told me they purchase US Bank foreclosures in bulk on a regular basis. Thus, there is no way for us to document what the previous sale price was. The fact that this company works for profit and made no major renovations to the property doesn’t help. I’ve forward this information on the investor u/w and awaiting a reply but this sure looks like a flip and would thus be ineligible for FHA financing until on or after Feb 3rd, 2014."

I thought FHA enacted a waiver in 2010 that got renewed in 2012 and extended through 2014 that waives the 90 flipping contingency for all situations except when the sales price is 20% or more of the sellers cost to purchase the property. Even if the new sales price is 20% or more doesn't mean the deal is non-financiable. The seller just has to show proof in the form of receipts for why they are asking 20% or more of what the house was purchased for.

How is there no way to document what the previous sale price was? It appears to me the house was occupied originally by individuals who took out a mortgage with US Bank and they were foreclosed on. Then Goshen REO purchased the foreclosure in a bulk purchase with other properties. Doesn't the county auditor have records of all home sales?! This is a snippet of what I found on the auditor site for the house.

Who is off base here him or I?Does this not mean that US Bank sold the property to Goshen for $116,250?