I am dropping a line to share some notable news with you.

In an effort to stabilize home values and improve conditions in communities where foreclosure activity is high, the U.S. Department of Housing and Urban Development (HUD), has come up with a plan. As most of you know, FHA currently prohibits insuring a mortgage on a home owned by the seller for fewer than 90 days.

Currently, HUD is implementing a program that will speed the resale of foreclosed properties by expanding homebuyer access to FHA insured mortgages by waiving this requirement. This temporary waiver will give FHA borrowers access to a broader array of recently foreclosed properties.

FHA has noted that in today’s market acquiring, rehabilitating and reselling of foreclosed properties to prospective homeowners often takes fewer than 90 days. The policy change will permit buyers to use FHA insured financing to purchase HUD-owned properties, bank-owned properties or properties resold through private sales. It is believed that this will allow homes to resell as quickly as possible helping to stabilize real estate prices and to revitalize neighborhoods and communities. The waiver will take effect on February 1 and is effective for one year unless otherwise extended or withdrawn by the FHA Commissioner.

Best regards and wishing you much success,