Though the nation's housing stock continues to slowly decrease, there is still an estimated 8 to 9 month backlog of homes available for sale. Market saturation causes home prices to remain low, and makes potential buyers hesitant to invest in private property. At the start of 2010, the FHA issued a waiver to it's anti-flipping regulation, in hopes of spurring housing market activity. The waiver was set to expire at the end of 2011.
Just before the new year, however, the FHA issued an extension, continuing its anti-flipping waiver through 2012. The regulation prevents it from insuring the mortgage on a property that is sold less than 90 days from the date of acquisition. Under normal circumstances, the regulation is meant to protect people from buying homes at artificially inflated prices.
However, at the end of 2009, the FHA determined that current market conditions warranted a temporary lifting of this regulation. The sharp increase in foreclosures and the number of abandoned properties meant the housing market was quickly becoming over-burdened. In addition, bank-owned and abandoned properties are often in significant states of disrepair, and few potential homeowners want to invest the time and money needed to make a home livable.
Currently, investors are not prohibited from buying foreclosed or abandoned homes, rehabilitating them and putting them back on the market. However, a person who wants to buy one of these homes can't do it with an FHA mortgage. This severely limits the market for rehabilitated homes, discouraging investors. As a result, the market continues to be saturated with abandoned, often uninhabitable homes that no one wants to buy.
By extending its anti-flipping waiver, the FHA ensures that thousands more potential homeowners are able to purchase rehabilitated homes, ensuring demand for the homes remains high. As long as people are able to turn a profit by buying, fixing and re-selling foreclosed homes, they'll do it. Encouraging people to invest in foreclosed properties will get them off the market faster. In addition, rehabilitated homes sell for more money, helping increase property values and spur a recovery in the housing market. คอนโดมือสอง กรุงเทพ
Several conditions must be met in order for the anti-flipping waiver to apply, including documentation justifying the selling price if it's 20 percent or more higher than the home's previously-determined value. Fortunately, the requirements are easy to fulfill, and not likely prohibitive. If substantial work has been done to a home, justifying a significantly higher selling price can be achieved simply by showing before and after pictures and producing a few receipts.
In addition to providing opportunities for buyers, the waiver extension creates a potential opportunity for affordable home developers whose refurbished properties can continue to be purchased using FHA-backed mortgages.
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