HUD Flip-Flops on Flipping Ban

HUD is flip-flopping on its own flipping policy. Starting Feb. 1, the housing agency is temporarily lifting its ban on selling FHA-insured homes in fewer than 90 days. The ban was originally intended to discourage flippers. By lifting it, the housing agency is hoping to help stabilize home values and improve conditions in communities where foreclosure activity is high.

This is good news for investors, who can start turning homes around in a matter of days. The primary purpose, though, is to help buyers and revitalize neighborhoods. The policy change, effective for a period of one year, will permit buyers to use FHA-insured financing to purchase HUD-owned properties, bank-owned properties, or properties resold through private sales. This will allow homes to resell as quickly as possible, hopefully helping to stabilize real estate prices.