WASHINGTON - The Bush administration is suspending a 5-year-old rule intended to deter property flippers as part of an effort to help speed the sale of foreclosed properties.
For one year, the Federal Housing Administration will no longer impose a 90-day waiting period before foreclosed properties can be sold and receive government-backed loans.
The policy aimed to deter property flipping schemes, in which buyers are overcharged for foreclosures. But the surge in vacant properties resulting from borrowers who were unable to afford their mortgages has become a far more pressing concern.
- Associated Press
This short article came out today. I'm not certain that it will have much effect given the market today. Flippers are not quite as common place as they once were. However, government loans are clearly becoming more and more important. Ultimately, this is a possitive thing for the regular buyer who, for one reason or another, needs to sell a foreclosed home that they had bought.
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