On December 22nd, HUD announced that the Federal Housing Administration’s (FHA) anti-flipping waiver will be extended through the end of the year, 2012.
A December 28th press release stated that the extension permits “buyers to continue to use FHA-insured financing to purchase HUD-owned and bank-owned properties, no matter how long the homeowner has held the title—through December 31, 2012”.
The intent is to accelerate the sale of foreclosed properties. The first waiver, implemented February 1, 2010 has resulted in nearly 42,000 additional insured mortgages on properties which were purchased, often improved or renovated, then re-sold to new owners within a 90 day period.
The waiver extension comes with strict guidelines and conditions designed to prevent predatory practices. Read FHA’s anti-flipping waiver.
The FHA press release emphasized that “the waiver will allow homes to resell as quickly as possible, helping to stabilize real estate prices and revitalize communities experiencing high foreclosure activity.”