Expert: Dick Dennis - 10/6/2009

Question
Here is the situation... I currently has an installment contract with VA, and is trying to sell my property to the buyer who happens to be going FHA.  The problem is FHA is considering this sale a "flip" because the property is not in the my name, but is currently in the name of the bank.  I owned this property since 1996, which clearly indicates that this is not a "flip."  Is there anyway we can receive a waiver in this instance?  Or, is there any other way to clear this stipulation and FHA make an exception to this rule?

Please advise, because we are at a loss.

Thank you,
Cecilia Straznik

Answer
Maybe I am missing something, Cecelia. If the property is in the bank's name, there is no way it can be considered as YOU being the seller. You apparently have already lost the property through a foreclosure or lost it through deed in lieu. The VA installment contract is no longer on that property. If the buyer is buying it with an FHA loan, the bank has to have owned the property for 90 days otherwise FHA will consider it a "flip." If the property was in your name, I would suggest trying to talk to FHA to see if they can reconsider. If there is something I am missing, do let me know. I do wish you well.

Dick Dennis