The Federal Housing Administration (FHA) last week extended its temporary “anti-flipping” waiver an additional two years to Dec. 31, 2014, enabling investors to purchase and renovate foreclosed and abandoned homes and resell the rehabbed property within 90 days.
Previously, the FHA had imposed the 90-day standard as part of an effort to rein in rampant quick-flips of houses where investors made minimal or no improvements to rundown, foreclosed or abandoned houses, then sold them days or weeks later at high price markups with the help of inflated appraisals to purchasers using FHA loans.
