Bay Area REBlog

At least in one respect, it looks like the FHA has come to the rescue of neighborhoods which have been plagued by abandoned houses due to foreclosure. There has been a 90 day antiflipping rule which states the FHA will not insure a mortgage loan if the property had been transferred within 90 days from the seller’s acquisition. With the thousands of foreclosed properties throughout the country,  lenders who have many bank-owned properties have been caught in this ruling. Homes have been vacant,  delaying the community’s recovery and bring down values even further. Effective June, 2008 the antiflipping rule has been waived for one year for properties acquired by lenders, their subsidiaries, and their outside vendors. Thus it will facilitate the sale of bank-owned propeties.

To see more about the FHA antiflipping details.

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