Inman News (06/13/08); Carter, Matt:
The Federal Housing Administration plans to lift a 90-day waiting period on resales of homes financed by FHA-guaranteed loans for one year in an attempt to prevent communities from being saddled with foreclosed and abandoned properties. "The action we take today will allow home buyers to purchase these homes in much greater numbers and ease the excess supply of unsold homes in neighborhoods across the country," according to FHA Commissioner Brian Montgomery. The move also helps lenders get the properties of their books quickly--although they will have to repair any distressed homes and bring them up to FHA standards before doing so. The FHA implemented the waiting period in 2003 in an effort to crack down on predatory lending and house flipping.