A recent policy change by the U.S. Department of Housing and Urban Development is encouraging flipping to foster more sales of foreclosure homes. This is a major shift in policy, as the regulations until now required a home to be on the market for 90 days before a home could be flipped.
“Flipping” Coplan said, ” is when a house is bought and quickly resold for a profit.” “Foreclosed homes, typically damaged like the one [pictured] here, are being bought, fixed up, and resold for substantial profits.”
Until now there have been seasoning requirements that do not allow a property to be resold for 90 days on some loan types. The FHA which is a large part of mortgage activity taking place is valley has suspended the 90 day seasoning requirements for 1 year starting February 1st.
Last Month, foreclosure activity was up 4 percent from the previous month in the Valley, over one in every 100 houses received a foreclosure filing during January. Phoenix had the second highest foreclosure rate among metropolitan areas according to the latest report from Realtytrac.
The Valley was the only metro area among the top 10 to post a month-overmonth increase in foreclosure activity. The anti-flipping waiver isn’t the solution to the foreclosure crisis, but it’s a step in the right direction, said Jay Butler, associate professor of real estate in the W.P. Carey School of Business at Arizona State University. The waiver includes numerous safeguards to prevent inflated pricing, such as if the price of the home is 20 percent over the previous sale, the seller has to justify that increase, he said.
Josh Coplan has been in Real Estate for 6 years and is Certified in Short Sales & Foreclosures Resources(SFR). We congratulate Josh for making it to the front page of the East Valley Tribune, and also congratulate the Tribune for their excellent selection.
This is very good information to get out. Flipping has become very important in todays market and Josh appears to be at the top of his game, not to mention his photogenic qualities.
Jim C. you nailed it on the head! Many flippers are out there helping the neighborhoods and fixing them up. Great comments…awesome article!! Josh thanks for being at the top of your market!
Josh, Great job in helping shed some light on a very hot topic. It is great news for the investor and the home buyer…not all are greedy as they are made out to be. I personally know several flippers that serve a valuable purpose. Many home buyers can not afford to make the repairs after purchasing the property. This way after the property is flipped the homewoner is financing the entire purcahse including the repairs into the loan and is a win ..win for all. Now for you sckeptics out there that are thinking this is not right, take in to consideration that the appraisals which have become very strict on values will help determine if the value with improvements is really worth it. Now if we can just get the banks to shorten the processing time on “short sales” we REALTORS may regain our sanity.
Great article Josh!
Great Article. I am also a RE/MAX agent in AZ. This rule change is to be in effect for 1 year, but only some of the banks are adopting it. The waiver is voluntary I have discovered. Non-FHA underwriting can/will still observe the 90 day window… another example of the work that still remains to reverse the pendulum in the real estate industry. Thanks for the great article and insights Josh.
Thank you so much for the information……I certainly learned a lot…..it is people like Josh Coplan, ReMax, and the East Valley Tribune that help when help is needed…education never ends…..thanks for keeping us update!
That’s some great flippin’ information. There’s never been a better time to buy a flippin’. This flippin’ market is flippin’ crazy!
Thank you, Josh, for helping pave the “real estate” road with with this informative article. You are great Colleague, realtor and friend.
Very informative article. Thanks for the great information!!
Good luck to you and the Reeve’s team in the future!!
It is nice to see that there is a push to fix up these flipping properties.
Hey Josh! Looking good! Good article – thanks for the great info!
Congrats Josh!!!! Your the best!!
Thanks to Josh and the Reeves Team I have learned lots of new information regarding flipping houses. Josh looked great, hope to see more articles like this one making front page news!
Thanks for the info. I am sorry for the unfortunate people in the Phoenix area who have lost their homes. However, the new laws and the lowered prices are no doubt a good combination for some financial gains. If I had some “extra”, I would certainly explore with Josh the opportunities there. Thanks for the info! Maybe I could sell an organ. : )
Thanks for the new information on flipping. Maybe we should think about moving to AZ and have the very informed Josh and the Reeves Team help us find a house to buy!
Josh was very informative. I knew very little of the “flipping” requirements until he explained them in the article.
This is a good thing. We have had a couple of transaction that were effected due to the seasoning rule.
Congrats on making the front page Josh. I agree with Tre it was very educational. I had no idea that you there was a waiting period on flipping.
I agree with Tra’… I learned a lot.
I thought Josh looked very handsome & his knowledge, insight & comments were very educational.