Below is an article about the new changes in FHA. The foreclosure market has gotten so bad now the government is waiving the 90 day title law. This makes it easier now for a real estate investor to flip homes. For the last few years in the Charlotte real estate market the investor has had to hold on to the homes they bought for 6 months or so. If they did not do this they ran the risk of trying to sell the home after a few months only to find out the buyer's mortgage company wanted a 6 month chain of title. Thus causing the sale to fall through.
With this new suspention it is the hope other banks will follow the same path, It is already a great time to invest in real eastate in the Charlotte market. The idea of no chain of title will be very appealing to investors now.
WASHINGTON (AP) -- The Bush administration is temporarily suspending a
5-year-old rule intended to deter property flippers, as part of an
effort to
help speed the sale of foreclosed properties.
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.
The policy was put in place in 2003 to deter property "flipping"
schemes, in
which buyers are overcharged for foreclosures or other distressed
properties. But the surge in vacant properties resulting from
borrowers who
were unable to afford their mortgages has become a far more pressing
concern.
"A glut of foreclosed and abandoned homes harms neighborhoods,
frustrates
homebuyers and delays a community's recovery," FHA commissioner Brian
Montgomery said in a prepared statement.
The new policy "will allow homebuyers to purchase these homes in much
greater numbers and ease the excess supply of unsold homes,"
Montgomery
said.
Nationwide, 261,255 homes received at least one foreclosure-related
filing
in May, up 48% from the same month last year, and up 7% from April,
foreclosure listing company RealtyTrac Inc. said Friday.