Understanding The Changes To Anti-Flipping
There is some good news on tap for anyone involved in acquiring, rehabilitating and reselling foreclosed houses: The Federal Housing Administration is temporarily waiving its “anti-flipping” rules and will now insure mortgages on properties that have been owned by the current seller for less than 90 days. The policy change opens up a potent resource, the red-hot FHA fixed-rate mortgage program, to investors and property disposition companies looking to move houses quickly off their books at a profit.
The idea, according to FHA Commissioner Brian Montgomery, is to help get rid of the “glut of foreclosed and abandoned homes” now burdening large numbers of neighborhoods around the country. FHA’s 90-day policy slowed the process down. But at least until June of 2009, when the temporary waiver expires, it should no longer be an impediment.
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