Effective February 1, 2010, Housing and Urban Development Department will waive for one year an FHA guideline denies a mortgage insurance to a homeowner sells the property within 90 days. The new rule will encourage more buyer including investors to enter the market to buy REO and foreclosure homes. However, HUD Secretary Shaun Donovan said. “This change in policy is temporary and will have very strict conditions and guidelines to assure that predatory practices are not allowed,”
The new rule can be access at http://www.hud.gov/offices/hsg/sfh/waivpropflip2010.pdf