We have seen many home purchases fall by the way side over the last year as a result of an “Anti-Flipping” rule that the FHA initiated. The attached article from the Los Angeles Times reports the recent FHA change in this rule. This rule prohibited an FHA loan on any home that has changed hands within a 90 day window. On a practical level we were seeing investors buy distressed property on the ‘Court House Steps’ at auction. They would then refurbish the home and attempt a sale. An uproar ensued when you had a willing buyer and willing seller being stymied by this 90 day rule. In Danville,San Ramon, and Alamo this rule did not come into play very often. But we did see it often in the east county cities of Antioch, Brentwood, Pittsburgh…
Take a look at the article and let me know your thoughts.
FHA revises anti-flipping rule – latimes.com.
