For those looking to purchase a home, who the seller is has always been a potential issue. The Department of Housing and Urban Development (HUD) has historically frowned on sellers whoe "Fix and Flip" properties. Generally, this meant that any property tht entered into a contract within the first 90 days after a property was acquired was not eligible for FHA financing. During the last two years, HUD has waived this prohibition in an attempt to stimulate the sales of previously foreclosed properties. Unfortunately, this waiver is set to expire on December 31st.

What this means is that if you are looking to purchase a home that the seller has owned for less than 90 days, the home must be under contract, or at the very least have a written offer, signed and dated by all buyers to the transaction no later than December 31st. We are hopefull that HUD will extend the flip waiver, but there are no guarantees that this will happen.