To help facilitate the sale of bank-owned properties, the FHA (Federal Housing Administration) has suspended its 90‑day rule against flipping properties until June 9th, 2009 for properties acquired by lenders. Under the anti‑flipping rule, the FHA will not insure a mortgage loan if the property was sold within 90 days of the sellers purchase of the property. Foreclosed homes are vacant/abandoned and can harm neighborhoods and delay an areas recovery.The hope of FHA’s new policy is to facilitate the sale of bank-owned properties. However, FHA still requires homes to be “safe, secure, and sound," which isn't always the case with REO (Real Estate Owned) properties.
For more information about the waiver of FHA’s anti‑flipping rule, go to www.fha.gov.