An item hit the business news this weekend that reflects a good change in the rules affecting real estate...for a change.
FHA is suspending the "Anti-Flipping" rule that has been on the books for ten years. It had required that investors hold a property for 90 days before it could be resold. This was originally written to eliminate fraud and 'serial' flipping of the same property.
With the large numbers of foreclosures in poor condition now coming on the market, though, this gives buyers with low down payments a chance to buy renovated homes. It usually takes 60 days or less for an investor to buy, rehab, and list a house for sale. Now FHA is making these homes available to buyers with small down payments, not just those who have 10% or more.
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