The “Anti-Flipping Waiver” from HUD/FHA will be extended in 2011 for the Sacramento real estate market (and everywhere else too). To help bring stability to the market, FHA has announced an extension of the anti-flip rule. Formally FHA had required 90 days between initial acquisition to when the property could enter contract again.
What do you think of this news? Overall I think it’s a good move because we need properties in our market to move. I’m not a fan of rules that slow down the selling process if investors are doing legitimate rehabs. We still need to watch out for shoddy workmanship and classic examples for why there was a 90-day rule in the first place. It’s not good for anyone but the seller when the “remodel” is simply “lipstick on the pig” so to speak, meaning new paint, cheesy low-quality “upgrades”, and hiding all sorts of negative issues about the house through minor cosmetic “remodeling”.
You can read more about the extension of the Anti-Flipping Waiver at the following link (PDF press release from HUD). In essence, just know that HUD will extend the waiver from January 31, 2011 through the end of the year. If you have any questions, insight to share, or opinions, please comment below.
If you have any real estate appraisal, valuation consulting, or property tax appeal needs, contact me at 916.595.3735, www.LundquistCompany.com or via Facebook.