by Carla Palmer
2. February 2011 19:40
The FHA announced on January 28, 2011, that it would extend its “Anti-Flipping Waiver” through December 31, 2011.
Under normal conditions, FHA regulations prohibit insuring mortgages on homes owned by the seller for less than 90 days. But in today’s foreclosure-ridden environment, with so many distressed properties on the market, the agency has found that many rehabs take less than 90 days, and the tightened credit market often leaves FHA-insured mortgage financing as the only means available for potential homebuyers to purchase these recently-renovated properties.
The extension of the waiver will also help move more foreclosed properties off the market and reduce the number of vacant homes in neighborhoods throughout the country.
In fact, the agency reports that, since the waiver first took effect in February of last year, they have insured over 21,000 mortgages, at a value of $3.6 billion, on properties resold within 90 days.
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FHA Extends ‘Anti-Flipping Waiver’ to Speed Sales of REO Homes
- Carla Palmer
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