It's Good that FHA Suspended its 90-day Rule Against Flipping

Foreclosed and abandoned homes harm neighborhoods and delay a community’s recovery.

In order to help facilities sale of bank-owned properties, the Federal Housing Administration (FHA) has temporarily suspended its 90-day rule against flipping of properties.

Under that anti-flipping rule, the FHA does 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 FHA still requires homes to be “safe, secure, and sound," which may not be the condition of certain foreclosed-upon properties.

Check out Federal Housing Administration. Also check out article about California REO Transactions at California Association of Realtors.

Posted by Harrison K. Long, Explore Properties Group