Phoenix AZ Homes and Condos

FHA’s action to extend the anti-flipping waiver through all of 2012 is very good news! This waiver has made it possible for investors to buy, repair, remodel and resell Phoenix bank foreclosures and HUD homes. As a result we will continue to liquidate our inventory of bank foreclosures and provide quality Phoenix homes for sale that have been repaired, beautifully remodeled and remain affordable.

Before the anti-flipping waiver was put in place back in 2010, the cost to buy, fix up and hold onto the home for 90+ days until it qualified for the buyer’s new loan was prohibitive. The restriction increased the cost of habbing homes at a time when there were thousands of beat up Phoenix bank foreclosures and HUD homes on the market that had to be resold. It also limited the number of investors who were able to raise the money for the repairs and the additional ownership costs for more than 90 days. Banks wouldn’t finance investors and contractors with the expertise to do these fix and flips and those considered credit worthy were forced to get high cost, short term,  “hard money” loans. 

While FHA offers the 203K loan that allows a buyer to add the cost of repair into the loan, the average buyer does not have the time and expertise to manage a major renovation that has to be done after they own it. Nor does the buyer want to buy a home that is uninhabitable until the work is completed - even though they could finance into the loan their temporary living costs while renovation is being done. This added to the loan amount and made the purchase more expensive and more difficult to qualify for the home loan. The anti-flipping waiver removes the roadblocks to getting foreclosed Phoenix and HUD homes repaired and remodeled so they can be purchased by grateful buyers.

After reviewing an up-to-date list of foreclosed Phoenix homes, HUD homes and short sale homes for sale in Chandler, Gilbert, Mesa, Scottsdale and Tempe, contact me to schedule a viewing.

Please share your experiences and comments. Thank you.

Sam Elam - Associate Broker specializing in Chandler, Gilbert, Mesa and Phoenix real estate and homes for sale AZ.