Listen Now!  (5:08 Minutes)
Presented
By		   

Additional Features		 

Waiver OK'd on flipping houses -

Published on Monday, January 18, 2010
By LESLIE BERKMAN


In a move that could make foreclosed properties more attractive to investors and increase the number of homes available to first-time buyers, the federal government is temporarily lifting a prohibition against providing FHA mortgage insurance for homes that are resold within 90 days.

The Department of Housing and Urban Development designed the regulation to discourage the flipping of houses by investors that drove up prices during the housing market boom of a few years ago. But critics say its unintended effect has been to reduce the options of first-time buyers who already are competing for a shrunken supply of homes for sale.

Last year banks slowed the flow of properties headed to foreclosure, possibly in an effort to modify troubled mortgages to make them more affordable or to avoid posting losses when the homes are sold.

The waiver on the purchase of flipped houses with FHA mortgages, which begins Feb   Read Full Article...

 
 

Comment/Review this Podcast:

 

Give us your feedback

Press-Enterprise is interested in hearing what you think about our Podcasts. You can give us your feedback by filling out our Audience Survey or email us directly at pe@shortcutlink.com.