New FHA regulations?!

On Nov. 2, new FHA regulations are going to be published.  The news on the street is intriguing.  Under the new guidelines, HUD is eliminating FHA spot approvals.  This is causing a lot of concern in the real estate industry.  I was searching for the latest list of FHA approved buildings in DC and came upon this link on the Real Estate Channel.  This article was also posted on a message board on another website.  Boy, were the opinions heated!!

For me, the elimination of the spot approval is a problem.  A current client is trying to write a contract this week to capitialize on the 8K home credit.  The unit they like is in a small building (8 units) and it's not FHA approved.  If spot approvals are gone, so are our chances on making an offer and using an FHA loan.

I've heard a rumor that spot approvals will be allowed until Dec. 7th.  My sources at First Financial Services, Inc. (FFSi) say otherwise.  I'm in a holding pattern until somebody finds out what's really happening.  The joys of lending '09 part 2. 

On a positive note, my 3rd short sale of the year FINALLY closed on Friday.  It was a month late, but it closed.  I'm relieved and elated for my client!

BTW..I hope everyone had an amazing Halloween.  DC was rife with costumes last night and it was highly entertaining.  We went to a Halloween party and I was a roller derby girl (skates and helmet included!).  Roller skates in a party provided a lot of interesting conversation.  I'm happy to report, I didn't fall down.  I love Halloween!


UPDATE: 11/2-  FHA spot approvals good until 12/7/09.  If you're using FHA, hurry, hurry, hurry!  Getting a building FHA approved is a process.  Getting into a building that's already FHA approved is a challenge too.  Good luck!