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On an HPML purchase transaction, I am trying to get a better understanding of the exemption from the 2nd appraisal rule in a sale within 180 days when the sales price has increased by > 20%, or within 90 days by > 10%. The rule exempts credit when the consumer’s acquisition is from a person “who acquired title to the property through foreclosure….as the holder of a defaulted mortage loan.” Does that mean the borrower or 2nd owner must be purchasing the property from, for example a bank or mortgage company that had a lien on the property when the 1st owner in this example owned it? or can this exemption apply if a builder bought the property at foreclosure from a bank, then made improvements to resell to our borrower? Would the exclusion apply in this example?
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