This will make it much easier for our local markets to re-absorb the foreclosed inventory. I remember back in the day when this was an effective tool for those out to gouge the rising markets and keep run ups under control. The one year reprieve will give our local markets more than ample time to right the ship and preserve what little values are left for the homeowners who bought the right way and can afford to service the debt on their existing mortgages. Kudos to HUD!
Will the 90 Day Seasoning Requirement Waiver Help Improve Real Estate Sales?
Effective 2/1/2010, the 90 day seasoning rule for FHA will be lifted. In an effort to stabilize home values and improve conditions in communities where foreclosure activity is high, HUD Secretary Shaun Donovan today announced a temporary policy that will expand access to FHA mortgage insurance and allow for the quick resale of foreclosed properties. The 90 day holding period will be lifted for a period of 1 year.
See Waiver which outlines the conditions that must be met.