HUD Takes Action To Speed Resale Of Foreclosures - FAQ

Temporary waiver will give FHA borrowers access to broader array of foreclosed properties

What Happened

With certain exceptions, FHA currently prohibits insuring a mortgage on a home owned by the seller for less than 90 days. This temporary waiver will give FHA borrowers access to a broader array of recently foreclosed properties.

When Does the HUD Foreclosure Waiver Take Effect?

Are there Limitations to the HUD Waiver?

• All transactions must be arms length.



• In cases in which the sales price of the property is 20% or more above the seller’s acquisition cost, the waiver will only apply if the lender meets certain specific conditions.



• The waiver is limited to forward mortgages, and does not apply to the Home Equity Conversion Mortgage (HECM) for purchase program. Specific condition and other details are in the text of the waiver at www.hud.gov