HUD Expands Waiver for Anti-Flipping Rule: The US Department of Housing and Urban Development (HUD) announced that it is temporarily expanding the property flipping waiver to include investors and entities that purchase foreclosures either singly or in bulk for resale. Under the waiver, homes that were foreclosed on and are being sold by the mortgagee or on its behalf may be purchased by FHA borrowers without regard to the 90-day seasoning period. NAR worked with the California Association of REALTORS® and FHA to expand the waiver.
HUD first announced the waiver on June 9, 2008, and the waiver was to be in effect for only one year. HUD exempted from the property flipping rules properties sold by HUD through its Real Estate Owned activities, new homes being sold by builders and properties being sold by relocation companies and the property owner's employer as part of a job relocation. HUD later extended the waiver through May 10, 2010.
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