moh malekpour
Elite Member
- Joined
- May 25, 2002
- Professional Status
- Certified Residential Appraiser
- State
- California
http://www.housingwire.com/2008/06/...anti-flipping-rule-for-foreclosed-properties/
The new plan is going to actively encourage flippers to buy HUD homes with FHA loans and resell them in less than 90 days to homebuyers. They think that this policy is going to reduce the number of foreclosures, improve the neighborhood and help homebuyers costs who wants to buy homes. How this plan is going get the neighborhood in better shape and reduce the number of foreclosures and help homebuyers costs when the HUD is actively bringing a flipper in between the HUD homes and JOE homebuyer? The profit that the flipper is going to make and sometimes it has to be 10 to 15% is going to be paid by the buyer. It is like to say that appraisals done thru AMC are going to cost less for the borrowers. The middleman never saves money for the consumer.Bush administration officials on Friday said they had made a major change to existing U.S. Department of Housing and Urban Development regulations for mortgages endorsed by the Federal Housing Administration, lifting a key anti-flipping provision that lenders and disposition firms have long said limits their ability to resell distressed real estate.
HUD officials said a newly-introduced temporary policy will now extend government-backed mortgage insurance and allow for the immediate sale of vacant foreclosed properties. FHA regulations currently prohibit insuring a mortgage on a home owned by the seller for less than 90 days, a limitation designed to prevent property flipping activity