FHA Temporary Lift of Anti-Flipping Rules: More Government Regulation Helping Big Corps?

You wrote:  "Basically true REO were exempt from the rule before (when a house went "back to the bank") but third party or private party investors who purchased property at the trustee's sales were not exempt."

I am now and will always be suspicious of the motives or intent of any government rule, regulation, law, etc. that pits one group against another both of which have the same goal. 

Hi Renee...Great Story, you could be very well Correct with your observation :O)) Great Reporting !

Renee,

That's an interesting take on the situation, and totally plausible. Thanks for the mention and link.

Renee - It doesn't surprise me that the banks have been able to change the rules. Barney Franks and Chris Dodd are probably trying to find ways to line their pockets before their last term ends.

Renee, I can get on board with your thought train.  I am noticing that things that the gov't does seem or sound pretty good UNTIL we start living with it. Aside from the banks getting increased prices at auction the flippers will be able to sell FHA.  That can be a good thing for moving inventory.  As for shadow inventory.....I have shadows all around me down here just waiting in the wings to hit the spot light. 

Plus, at least the flipper floks will rejuvenate the property to sell.  The banks just let them sit.  It is like showing Miss. Havasham's house.

Interesting perspective. All I know is that all my investor/flipper friends are begging me to get back into the business with them but my brain and body are keep telling me that I've done my time there.

Renee, I have watched some very interesting transactions going on behind the scenes on foreclosed properties over the past 18 months in this area.  This encompasses both the politicians and the banking industry and will cause to harm the industry further.

Renee - Today we get the sappy news that sales are down 16.7%. Down from December. Let the flippers Flip. That is a free market solution. What if someone told you  (in a free market system) that you could buy but you could not sell. ????? Who the heck is going to buy? Great post

Renee:

I'm personally very excited about the change in the rules, as my husband and I getting ready to buy several properties at the foreclosure auction and rehab them, then put them up for sale.   It will make it much easier for them to sell if we can offer FHA financing on them.