In an effort to facilitate the sale of bank-owned properties, the Federal Housing Administration (FHA) has temporarily suspended its 90-day rule against flipping 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 now 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.
For more information about the waiver of FHA’s anti-flipping rule, go to www.fha.gov. For general information about bank-owned property transactions, see C.
1 response so far ↓
How Will The Foreclosure Rescue Bill Help Homeowners? « Mahler & Associates Appraisals // July 1, 2008 at 2:17 am |
[...] public, but I don’t know. There are a lot of reasons it’s a bad thing to have a bunch of empty foreclosed homes littering the landscape; namely the fact that it brings down the property value of the other [...]