Wednesday, January 19th, 2011 at 12:29pm

Extension of FHA 90 day Flip Waiver Likely

Posted by Ron Ballard

Several real estate blogs and news sites have been buzzing about the extension of the waiver of the 90 day flipping restriction for FHA insured loans. It’s important to keep the news in perspective.

I have searched the HUD and FHA web sites high and low for an official announcement and have not yet found one. At this point it is a news report which seems credible.

Kenneth Harney of the Los Angeles Times reports the expected extension of the waiver from an interview with Vicki Bott, deputy assistant secretary for single-family housing at the FHA.

Interestingly, Bott is reported as stating that the waiver is being extended partly as a result of the FHA not seeing fraud problems, defaults and re-foreclosures that cost the agency millions in insurance payouts in earlier years.

Harney reports that first-time home buyers have “responded overwhelmingly” to the opportunity to buy renovated houses with FHA loans and have performed well on their mortgage obligations.

These anecdotal comments confirm what I’ve been saying for months: private investors are a part of the solution to the “housing crisis,” not a “fraud” problem. Moreover, they don’t require a new governmental program to be administered and they aren’t asking for any bailout money or funds of any kind.

Hopefully, these kinds of reports will lead to a more positive view of investors in both the financial and regulatory sectors.

You can read the original article, which was published on January 16, 2011, at,0,6473194.story .

3 Responses to “Extension of FHA 90 day Flip Waiver Likely”

  1. […] This post was mentioned on Twitter by Nicolas Leon, michelle simmons. michelle simmons said: Is the 90 day FHA waiver coming back?? […]

  2. Aaron Ayotte says:

    Ron, I just watched a recorded broadcast with the CEO of CDPE and a Sr. Short Sale Executive of Bank of America, Kimberly Dawson. At about minute 54, CEO, Alex Charfen asks her about A-B-C transactions and pretty-much leads her into her answer – consisting of the disbelief that you can’t take a property from a distressed state (short sale) into a non-distressed state (retail) and add $30k in value. It was quite frustrating to watch, actually. And she also discussed, what we already know, that BofA expects “retail” BPO’s to be performed, and expects “retail” offers in order to better assist with “quick approval”. Who are they kidding with this crap? Distressed is distressed people and guess what, if you take the dumb thing back it’s REALLY distressed now because it’s vacant and has a foreclosure tag on it!

    Prior to minute 54, he also probed, leadingly, into what BofA is doing to prevent short sale “fraudulent” flips (those that don’t include a rehab to add ‘real’ value) and received her reply consisting BofA’s efforts to work with governmental agencies to prosecute those flipping short sales illegally.

    I’m starting to have shortness of breath, so I better just leave you the link and stop typing. 🙂

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