The Federal Housing Administration (FHA) has temporarily suspended its 90-day rule against flipping properties. The suspension is an effort to facilitate the sale of bank-owned properties.
Under the anti-flipping rule, the FHA will not insure a mortgage loan if the sales contract is executed within 90 days of the seller’s acquisition of the property. Effective June 9, 2008, the anti-flipping rule has been waived for one year for properties acquired by lenders, their subsidiaries, and their outside vendors.
The purpose of FHA’s new policy is to facilitate the sale of bank-owned properties, given that foreclosed and abandoned homes harm neighborhoods and delay a community’s recovery. However, FHA still requires homes to be “safe, secure, and sound,” which may not be the condition of certain foreclosed-upon properties. San Diego County real estate blog
The FHA always moves too late & too little to be of any real help.
Jim
San Jose Attorney
In the end, the coming days, weeks, and months, it will become increasingly more important that The Federal Reserve and its policy makers in the government keep an eye on both Wall Street and Main Street. America is made of lot of little guys that make our economy run…… If the little guy has a problem in our economy, the Big Guys in our economy feel the pinch.
Gerald
OC Bail Bonds
There is plenty of blame to go around. As for me and my house (my company) we will do what is right all the time period…We all need to do what is right all the time.
San Diego County Realtors
I’m confident that there is a silver lining in all of this. I envision that one day in the near future, we will encounter nothing but smooth transactions without all of the “mortgage drama” ….”Lender abuse”…and the old-fashioned “bait and switch” so rampant in the 1990s and early 2000s. Thank God!
San Diego Eye Care