Posted by Dave on May 19, 2005 at 09:44:19:
Melvin:
I’m no expert, but I found this:
"The final rule, “FR-4615 Prohibition of Property Flipping in HUD’s Single Family Mortgage Insurance Programs,” (view as TEXT or view as PDF file) makes recently flipped properties ineligible for FHA mortgage insurance. It also allows FHA to better manage its insurance risk by requiring additional support for a property’s value when a significant increase between sales occurs.
I pulled, printed and read…
Hey, does this apply to what we’re striving to do? the language specifies alot, like “contract assignment” and stuff that’s well, it’s sort of difficult for me. Can anyone out there with a little legal know-how help?
Flipping Properties - Posted by Melvin
Posted by Melvin on May 18, 2005 at 13:45:32:
Can anyone help me?
A title company returned my call yesterday, I’ve been searching for one that does double close… The rep stated that in this area HUD was searching for those that “buy at one price and sell at a higher price”. She said this is flipping property and it is illegal in Baltimore and all of the Maryland area. Is she right?
When I did a search on real estate, with a couple court legal research software packages, I encounter nothing stating this. I could have searched for incorrect data.
Can anyone shed any light on this for me? I have a strong cash buyer lined up, don’t want to disappoint or be disappointed. Will I have to move my business interest to another state that does allow it? Please help.
Feel free to say as much or whatever that may help me thanks.
Melvin
Re: Flipping Properties in Maryland - Posted by Melvin
Posted by Melvin on May 19, 2005 at 07:47:56:
REI Experts and Mentors:
I really need a little direction from you… regarding my prior post, can anyone help???
Are there laws in Maryland prohibiting the wholesaling/flipping of properties/is this title representative steering me wrong.
According to what Mr. Bronchick’s recorded says, there’s nothing at all wrong with it, not to be confused with fraudlent mortgage deals…
Please help me, I have two deals on hold as a result of the information I’ve been told, and if it’s correct maybe someone can suggest another method/problem solving solution to make this a win/win for me and my cash buyer/rehabber.
Truly grateful…Melvin