Starting today the Federal Housing Administration is revising its long-standing 90-day anti-flipping rules.
For much of the past decade the FHA’s 90-day anti-flipping rule went like this: if the seller had owned a property for less than 90 days, then the FHA would not insure a new mortgage for the buyer. The ban was imposed to prevent fraudulent quick flips of houses.
The FHA is now suspending this policy for at least the next year. One of the goals of the new policy is to speed up sales of renovated houses (i.e. foreclosures) to first-time buyers and other purchasers.
Read the Washington Post story here: To boost sales of foreclosures, FHA suspends anti-flipping rules
billddrummer
This should be good news for NV RES I
BanteringBear
Anything to try to juice the market.
CommercialLender
Can anyone hear me screaming?! I’m going mad at this governmental engineered train wreck! Let me get this straight: a flipper before had to wait a whole 90 #@$%ing days before closing his flipped lipsticked and band-aided house in order to attract a lesser sophisticated, lower equity buyer. Now, with brilliance of astounding proportions, HUD decides the poor flipper should have basically a govt insured #@@$ing business loan so he can operate a flipping business by churning more crap at a faster pace all the while more unsuspecting, low equity, lesser sophisticated buyers can embark on the ‘American Nightmare’ at an ever-elevated rate! Wow!
When you are in a hole, dig faster!!!
WTF, HUD?! %##$%#$%#$%$%#$%$ing #@$@%%@@$%$%% government, #@@$@%#%@##%#$ socialists! Is anyone awake in this Administration?
Signed,
-Can’t Take It Anymore
billddrummer
To CL,
You sound like Peter Finch in “Network”:
“I’m mad as hell, and I’m not going to take this any more!!”
All kidding aside, that’s why unplugging from the system is more and more appealing.
skeptical
CL,
Never heard you quite so emotional before. Good. Perhaps it is spreading. I’ve been wondering where the outrage has been. Perhaps it has been seething under the surface all along.
Hate to say it, folks, but this “democracy” is totally dysfunctional. Legislators are totally incapable of financial responsibility. They are beholden to corporate interests. And, with the recent Supreme Court decision allowing unhindered corporate spending during elections, you ain’t seen nothin’ yet.
Do you reckon the NAR and big banks might have dropped a few suggestions into the ears of regulators and legislators allowing this rule change, which permits the <90 flip??
Democracy? Republic? More like corporate oligarchy. Time to move to Canada….
Sully
Well, Jeremy is probably popping the champagne cork. 🙂
CommercialLender
BDD,
“unplugging from the system” sure does sound appealing, quite like Ayn Rand’s Atlas Shrugged. Oh, the prophetic writing of her piece 50 years ago…
****
Skep,
Your 1st paragraph is spot on, however your 2nd needs tweeking. Our founding fathers created a novel, working, and well engineered system of govt, and this govmt then followed well the constitution for 100’s of years. The problem is not a dysfunctional system of democracy, it is irresponsible participants perpetuating dysfunction. Incumbents beholden to special interests over the interests of their electorate, that is a dysfunctional legislature; government policies creating a class of people who don’t work and another class of those who do but don’t pay taxes into it, that is a dysfunctional executive; anything-goes Godless behaviour by some dictating what is acceptable or even mandatory for all, that is a dysfunction in extreme interpretations of our bill of rights; hard work being cast aside for the siren song of instant gratification, that is a dysfunction wrought about by complacent arrogance; responsibility being redefined as merely optional action subject to interpretation, that is the dysfunction of corrupted legal minds in the judiciary: these are all signs of tremendous decay in the citizenry and government alike that leaves my gut clenched. I must continue to hope that my fellow citizens arrive at similar conclusions before irreparable harm befalls us all. I want to scream at the thought it may be too late.
Oh, and Canada? No, thanks! There remains no better nation with more personal freedoms than this ailing one.
skeptical
CL,
Fair enough. However, on the last comment regarding Canada, patriotism is the last refuge of scoundrels. Not saying you are a scoundrel, just saying scoundrels keep throwing that line down our throat like propaganda, hoping that’ll make us put up with all this corruption, for the sake of country.
Please identify for me the personal freedoms that we have and that Canadians and Europeans do not have? One definition of freedom would be to be able to walk down the street at night without fear of violence. Not sure that’s even the case in Reno’s seedier areas.
Also, if you are an American without a job and/or without health insurance, or facing foreclosure, you might not feel too free right about now. I’ve lived in Europe, and I’ve travelled the world. Can’t say I felt any less free anywhere else.
Let’s just be honest with each other, and then maybe we can solve our problems. I pretty much agree with most of what you have written on this blog, but something’s gotta give in this broken system if our children and grandchildren are to have a good life.
SkrapGuy
Remember when there were a few pepole here last Fall who said the first time home buyer credit was going to expire? And I replied only the most naive could think that was going to happen. And I pointed out that the NAR spends about 38,000 lobby dollars per year on EVERY member of Congress. More than $20 million a year.
Multiply that kind of money and influence by the oil companies (who spend a lot more), and the drug companies (who spend a lot more), and the health care industry (who spends a lot more), and the Wall Street interests, and the list goes on and on and on…….and wonder why things are the way they are?
We have the best government money can buy. Republicans. Democrats. They are all for sale.
skeptical
Skrappy,
Amen.
Term limits, tort reform, and campaign finance/lobbyist reform are this country’s only hope. I’m so desperate I’d take just one of those three….
BanteringBear
I have been screaming for campaign finance reform for more than 10 years. It seems impossible, now.
DownButNotOut
Have the other two pass and there wouldn’t be any need for term limits.
All of us getting so pissed off is what it’s going to take.