The White House temporarily suspends "flipping rule that imposes a 90-day waiting period before foreclosed homes can be sold in order for these buyers to receive FHA (Federal Housing Administration) insured loans.
According to the release, ...
"For one year, the Federal Housing Administration will no longer impose a 90-day waiting period before foreclosed properties can be sold to receive government-backed loans" as "part of an effort to help speed the sale of foreclosed properties".
In Maricopa County, Metro Phoenix, we are suffering from some of the highest foreclosure rates in the country. In fact, the foreclosure rate has nearly tripled since 2007, according to research firm RealtyTrac.
As a result, it is imperative that buying restrictions are eased and tax advantages are offered to excite homebuyers to purchase foreclosures, short sales, bank owned real estate, REO properties and resale homes.
Until the supply of homes is reduced, it will be difficult to see any improvement in sales volume and sales price.
Further, foreclosed homes cause wonderful communities and its residents suffer as they wait for a recovery.
Mr. President, this is a move in the right direction in what I hope will be many initiatives, by the Federal Government to legislate changes to stimulate real estate buying and prevent more foreclosures.
Americans are not asking for a 'Bailout'. However, struggling homeowners across the country implore you to consider a bi-partisan bill that will support the American Housing Rescue and Foreclosure Prevention Act , and the needed Rescue Plan that will be voted upon today in the Senate and tomorrow in the House of Representatives
I encourage you to support legislation that would stimulate buying and would have lenders ease struggling homeowners' loans and make Federal Housing Administration refinancings more widely available.
read a story about a woman who paid $1.75 , thats a buck seventy-five for a home on ebay. She should be able to flip without the fix
I work quite a bit with lender owned real estate. Many areas of Phoenix have opportunities at more than 50 cents/ dollar. Granted, it may take time to sell (so not a flip), but still great buys nonetheless
I have a client who purchase a bank owned home at about 60% of value due to water damage and the presence of black mold. As a contractor, he fixed the problems, re-listed the home in the new condition and sold it for a (small) but still profit.
I work for a company that negotiates short sales with homeowners facing foreclosure. We are able to turn these deals over to investors at rock bottom pricing. Many of those investors are able to lease back to the owners and sell later or flip for a profit
It will be nice to see some of the former bank owned properties getting their face lifts and re sold to good qualified buyers again at affordable prices.
Judy - great point. as soon as we can get these bank owned homes back in the hand of actual homeowners, we can see home values rise as they take pride in their own home.