Was this a good idea? Did somebody make a mistake? Is the flood gate wide open for bad deals? The FHA 90-day waiting period, created in 2003 to retort predatory lending and house flipping has been given a reprieve, on the heels of the worst housing crises since Moses and the Hebrews had to flee Egypt and wandered in the wilderness for forty years without a home !!!
The original ruling , "FR-4615 Prohibition of Property Flipping in HUD's Single Family Mortgage Insurance Programs," also required lenders to obtain a second appraisal on properties that they flipped or resold
within 91 and 180 days if the resale price exceeded the original sale price by 100%.
Did that mean that if the flipped price was only 99% in excess of the original purchase price that the red flag was lowered and it was ok to sell the house the investor purchased for 50k for 99k without raising an eyebrow, without even replacing a doorknob?
What kind of affect will this have on the housing market?
There are nearly 19 million vacant homes in the United States at this time according to the United States Census Bureau. The Federal Housing Administration believes that,"...a temporary relaxation of it's eligible property requirements...can help address the mortgage crises."
Will somebody please tell me how?
Comments(6)