Did I find the HUD 90 day rule loophole here? - Posted by js-Indianapolis
Posted by js-Indianapolis on September 11, 2003 at 24:25:41:
Or am I just tired, and hallucinating? OK, the new HUD rule for us evil flippers is here:
However, I just noticed something. They made an exception for relocating companies. Here?s where they talked about it:
?Comment: The proposed rule could have significant negative
consequences on government and corporate employees relocated yearly by
their employers. Several commenters wrote that the six-month
restriction would have a negative impact on the thousands of government
and private sector employees that are relocated each year. The
commenters wrote that, from an employer’s standpoint, any house
purchased from a relocating employee would essentially be unsaleable
through the FHA programs because the six-month waiting period would
result in unacceptably large carrying costs. Several of the commenters
advocated that the final rule exempt properties acquired by an employer
in connection with an employee’s relocation from the restriction on re-
HUD Response. HUD agrees with the commenters and has revised the
proposed rule at the final rule stage accordingly. The final rule
exempts properties acquired by an employer or relocation agency in
connection with the relocation of an employee from the time restriction
And later on, they wrote it in their big official ruling.
Now, if you haven?t seen where I?m going with this already, why not set up a relocation company? Heck, half my sub to leads around here are job transfers anyhow. That just might help my business, regardless of skirting some ruling.
However, to the point, why couldn?t JS-Indianapolis Relocation, LLC buy Joe Seller?s house, and sell it in less than 90 days?
First time I?ve seen this exception. Am I off base here?