FHA Opens New Foreclosure Rules

A great article from Preservation Monthly. The FHA is opening a one year program to help stabilize neighborhoods struck with foreclosure. The program, available February 1st, 2010 will allow access to FHA insurance much faster.

In today’s market, FHA research finds that acquiring, rehabilitating and the reselling these properties to prospective homeowners often takes less than 90 days. Prohibiting the use of FHA mortgage insurance for a subsequent resale within 90 days of acquisition adversely impacts the willingness of sellers to allow contracts from potential FHA buyers because they must consider holding costs and the risk of vandalism associated with allowing a property to sit vacant over a 90-day period of time.